28 MAR 2011

Measure your customer loyalty with NPS (Net Promoter Survey)

NPS (Net Promoter Score) is gaining more and more attention. Organizations more often start to measure customer loyalty with NPS instead of satisfaction.

NPS has been created by Fred Reichheld, Bain & Company i Satmetrix. In 2003 it has been described in Harvard Business Review in the article "The One Number You Need to Grow".

In practice NPS conception is very simple. Respondent answers one question "How likely is it that you would recommend our company / service  to a friend or colleague?", by selecting rank between 1 - 10. People that selected 9 - 10 are called Promoters, values 7 - 8 are called Passives, and marks below 7 are called Detractors.

Net Promoter Score

Depending on selected value respondent is redirected to answer additional question and can describe what hi/she likes or dislikes about the company or services.

Your task is to have as many Promoters as possible, and at the same time as little Detractors as possible. NPS is calculated by dividing from percentage of Promoters, percentage of Detractors. It is assumed that 70% is a good score.

Net Promoter Score = (% of Promoters) - (% of Detractors)

Net Promoter, NPS, and Net Promoter Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

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