What is net promoter score (NPS) ?

What is net promoter score (NPS) ?

Net promoter score (NPS)

Definition:

It is an index from the range of -100-  to  100, which measures the customers willingness to praise or vote and suggest products or services to others. This metric reshape the business world and provides the core measurements for customer experience.

Net promoter score (NPS) measures the customer loyalty towards a brand and predicts accurate business growth.

"System builder (NPS) is Fred Reichheld

Frederick F.Reichheld (born 1952, LPCleveland) is a New York Times best-selling author, speaker and business strategist best known for his research and writing on the loyalty business model and loyalty marketing. He is the creator of the Net Promoter System of management (NPS)."

 تجربة تسوق أمنة وتخفيضات كبيرة بمناسبة العام الجديد من متجر اشتري اون لاين تسوق الان 

Fred-reichheld | Wikipedia 

And I've talked before about increasing customer loyalty based on the Net promoter score, and most important points that must be preserved to put your company in the leadership position. 

What can you measure using NPS?

• Tracking each product line.

• Competitive advantage by comparing.

• Understand the target market.

• Gain customer loyalty.

The Net Promoter Score Calculation:

The NPS is calculated by performing a one-question survey, for example "How likely is it that you would recommend (brand) to a friend or colleague ?" .

This is on metric from 0 to 10 see image:

The Net Promoter Score Calculation

Customers are classified into three categories ( promoters, passives, detractors).

1. Promoters respondents score range 9 or10

2. Passives respondents score range 7 or 8 

3. Detractors respondents score range 0 to 6

The Net Promoter Score (NPS) calculate the difference between the percentage of the Promoters and Detractors.

How to implement NPS effectively ?

• Identify the main target customer: 
Focusing on what exactly customers need.

• Develop your NPS system: 
By linking between the NPS survey questions and company (KPI's)., as NPS is a sample for data collection method.

• Customer Loyalty: 
Understanding well the customer feelings and behaviors of your detractor, passive, and promoter feedbacks. It's important to keep in touch with your customer, building strong CRM.

• Creating close loop system: 
Effective management system in all departments. Each management has its own task to ensure that the process is running dramatically.

The importance of NPS 

NPS help company to measure and evaluate its customer loyalty by keeping in touch with them based on question survey, provides the company a clear impact about its product or service.

• Increasing customer satisfaction by providing them directly what they need effectively.

• Evaluating and Increasing customer loyalty by measuring customer satisfaction. Satisfaction is not effective if the customer not loyal , but NPS let the company identify and reach the customer happiness level.

• Creating more advocates, by recommending people surrounded you. Its like a work of moth which is a powerful marketing tool. NPS allows a clear ideas on increasing the customer advocates. 

• Reduce the customer churn: by focusing on promoters its very important, as NPS let you invest more into creating an unforgettable customer experience, which supports passives and detractors.

• Growth it's after you collect the data about your market, suppose you have to take an action as NPS provides an accurately plan for what to achieve.

Conclusion

NPS provides a full image of how to manage your company. As promoter to spend more , offers on new products, encouraging others to buy your product, less churn as well as promoters have a highly lifetime value. Using NPS is a tool to achieve positive growth easily just follow the steps.