Net Promoter Score (NPS)
The Net Promoter Score, or NPS®, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors. By asking one simple question — How likely is it that you would recommend [your company] to a friend or colleague? — you can track these groups and get a clear measure of your company’s performance through your customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows: * Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth. * Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings. * Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth. To calculate your company’s NPS, take the percentage of customers who are Promoters and subtract the percentage who are Detractors.
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. Companies are encouraged to follow this question with an open-ended request for elaboration, soliciting the reasons for a customer's rating of that company or product. These reasons can then be provided to front-line employees and management teams for follow-up action. Many companies which use NPS, call back customers to engage them in a discussion about the feedback they provided through the NPS survey process, solve problems, and learn more so they can coach account representatives. nps@apple
Apple is one of the premier exponents of the Net Promoter Score for systematically listening to customers and managing its business in response to what they hear. Apple listens daily
Listening to customers isn’t something Apple does once a year or even once a quarter. NPS plays a central role...
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