Discover why the Net Promoter Score (NPS) cannot be missing from your strategy
Posted: Sun Jan 19, 2025 10:43 am
Consumer profiles are undergoing several changes, so companies need to be available to meet their needs. To this end, the Net Promoter Score is a key part of this process, as it will help you identify the most loyal customers and use them as a model in your BI strategies.
After all, getting new customers is more difficult and expensive than retaining current ones, so why not invest in this practice?! In this article, you will discover the benefits of NPS for your business, as well as understand its pillars.
Enjoy reading!
What is Net Promoter Score?
NPS is a benchmarking tool for customer satisfaction, buy bitcoin email list so this method is based on a survey that provides insights into customer loyalty by measuring customers' willingness to recommend your company to a friend or acquaintance .
Because it measures customer satisfaction by indicating overall sentiment about a brand , rather than specific interactions or purchases, this makes NPS stand out from the crowd. Because of this, it comes up frequently in discussions about customer experience !
Additionally, the Net Promoter Score is a standard benchmark used by companies around the world, making it a good practice for companies to benchmark their performance against their competitors.
How to calculate Net Promoter Score
1. Determine the number of promoters, passives and detractors
The calculation of the net promoter score is based on a questionnaire, which asks customers to rate how likely they are to promote a brand to their friends and acquaintances.
For example: “On a scale of 0 to 10, how likely are you to recommend company X to your friends, colleagues or business partners?”
Depending on the number they choose, they are placed in one of the following three categories:
Promoters
Promoters are people who give themselves a score of 9 to 10. They are considered more likely to exhibit value-generating behaviors, such as buying more, returning to the brand for a long time, and referring more people. They have a high “lifetime value.”
Liabilities
On the other hand, passives are people who score 7 or 8. They are considered moderately satisfied, and may remain loyal to the brand, but they also have the potential to switch to a competitor if the conditions are right. They will not make any special efforts to refer a potential customer.
After all, getting new customers is more difficult and expensive than retaining current ones, so why not invest in this practice?! In this article, you will discover the benefits of NPS for your business, as well as understand its pillars.
Enjoy reading!
What is Net Promoter Score?
NPS is a benchmarking tool for customer satisfaction, buy bitcoin email list so this method is based on a survey that provides insights into customer loyalty by measuring customers' willingness to recommend your company to a friend or acquaintance .
Because it measures customer satisfaction by indicating overall sentiment about a brand , rather than specific interactions or purchases, this makes NPS stand out from the crowd. Because of this, it comes up frequently in discussions about customer experience !
Additionally, the Net Promoter Score is a standard benchmark used by companies around the world, making it a good practice for companies to benchmark their performance against their competitors.
How to calculate Net Promoter Score
1. Determine the number of promoters, passives and detractors
The calculation of the net promoter score is based on a questionnaire, which asks customers to rate how likely they are to promote a brand to their friends and acquaintances.
For example: “On a scale of 0 to 10, how likely are you to recommend company X to your friends, colleagues or business partners?”
Depending on the number they choose, they are placed in one of the following three categories:
Promoters
Promoters are people who give themselves a score of 9 to 10. They are considered more likely to exhibit value-generating behaviors, such as buying more, returning to the brand for a long time, and referring more people. They have a high “lifetime value.”
Liabilities
On the other hand, passives are people who score 7 or 8. They are considered moderately satisfied, and may remain loyal to the brand, but they also have the potential to switch to a competitor if the conditions are right. They will not make any special efforts to refer a potential customer.