What are NPS Reports?
Net Promoter Score (NPS?) is a benchmarking technique to gauge customer loyalty and happiness.
What is NPS?
NPS is based on a single direct question:
How likely is it you would recommend us to a friend or colleague?
Respondents fall into three categories:
- Promoters rate your company a 9 or 10. They will consistently recommend you when asked about it.
- Passives rate your company a 7 or 8. They are considered to be fairly neutral and will not deter anyone from buying from you.
- Detractors rate your company between 0 and 6. They will discourage others from buying from you.
Important: Follow two simple guidelines to achieve comparable results.
- It is recommended that the survey consists of only the NPS question.
- It is recommended that you do not alter the question.
How to evaluate the results?
The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters, yielding a score between -100 and 100. The fewer the Detractors, the better your score is.
What are the applications of NPS?
The NPS methodology is useful in many situations. A few examples:
- Evaluate customer loyalty to your brand or company
- Determine the effectiveness of a piece of content
- Measure the value of the customer relationship after costs
- Guide your marketing automation and customer acquisition strategies
