NPS… It means the ‘Net Promoter Score’ and the majority of successful companies use it. It is the measurement that surfaces from asking a customer one simple question, a question that 66% of fortune 1000 company promoters ask. The response they receive helps them to understand their customers and the current health of their business.
Fred Reichfeld, the Bain & Co created the NPS concept to predict business growth. Asking one, ultimate question and measuring the result give companies the ability to measure the business’ performance through the customer’s eyes.
‘How likely is it that you would recommend [brand] to a friend or colleague?’
Customers answer this question on a sliding scale of 1 through to 10 to indicate how likely they are to promote the business to a friend or colleague. Responses received from this question create the NPS.
Why the Net Promoter Score is so Important
The Net Promoter Score provides powerful insight into what customers actually think about the business. It can reveal where a company has gone wrong, how a company can improve and most importantly, how they attract and retain customers.
The NPS really makes companies look deeper into and understand their customer’s experience. It identifies if the customer loyalty rate is high or low and helps to understand why people scored the way they did.
With the right tool in place, the Net Promoter Score can help companies improve loyalty and word-of-mouth recommendations and significantly reduce customer churn rates.
In order to do this and capitalise on the benefits of the Net Promoter Score, it is important to implement a customer feedback and experience software system that helps capture all of this information. Using a software will analyse all your results and help you to execute the strategic changes you require.
Companies That Use the Net Promoter Score
NPS helps companies all over the world and in many industries build customer loyalty and drive growth. Here is a small list of companies you may be familiar with that use the Net Promoter Score.
- American Express