Net Promoter Score (NPS) Measure

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A Net Promoter Score (NPS) Measure is a customer satisfaction measure based on the percentage of promoting customers minus the percentage of detractor customers.



References

2017

  • (Wikipedia, 2017) ⇒ https://en.wikipedia.org/wiki/Net_Promoter Retrieved:2017-11-20.
    • Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm's customer relationships. It serves as an alternative to traditional customer satisfaction research and claims to be correlated with revenue growth. [1] NPS has been widely adopted with more than two thirds of Fortune 1000 companies using the metric. Net Promoter Score is a customer loyalty metric developed by (and a registered trademark of) Fred Reichheld, Bain & Company, and Satmetrix. It was introduced by Reichheld in his 2003 Harvard Business Review article "One Number You Need to Grow". NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

       Net Promoter Score (NPS) measures the loyalty that exists between a provider and a consumer. The provider can be a company, employer or any other entity. The provider is the entity that is asking the questions on the NPS survey. The consumer is the customer, employee, or respondent to an NPS survey.

  1. Call Centers for Dummies, By Real Bergevin, Afshan Kinder, Winston Siegel, Bruce Simpson, p.345

2003

  • (Reichheld, 2003) ⇒ Frederick F. Reichheld. (2003). “The One Number You Need to Grow.” Harvard business review 81, no. 12
    • QUOTE: Where we could obtain comparable and reliable revenue-growth data for a range of competitors, and where there were sufficient consumer responses, we plotted each firm’s net promoters — the percentage of promoters minus the percentage of detractors — against the company’s revenue growth rate.