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Net Promoter Score (NPS) - Measure Customer Satisfaction in 1 Question

CheckMarket
CheckMarket
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The Net Promoter Score (NPS) is a simple but powerful tool to measure client satisfaction with one single question, an indication of the growth potential of your company or product. Read further for an overview on the use, application and pitfalls of NPS. Net Promoter and NPS are registered service marks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.

Net Promoter Score (NPS) - Measure Customer Satisfaction in 1 Question

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THE NET PROMOTER SCORE
MEASURE CUSTOMER SATISFACTION WITH 1 QUESTION
What is the Net Promoter Score?
Customer Loyalty
Metric Comparable over
time and
industries
Easy Interpretable
Customer
Satisfaction
Score
Indication of the
growth potential
of your company
or product
One
single
question
developed in 2003
by Fred Reichheld of
Bain & Company in
collaboration with
Satmetrix
How to calculate NPS?
RESPONDENTS DIVIDED IN 3 CATEGORIES
How to calculate NPS?
Promoters
respondents giving a positive score
(9 or 10)
Passives
respondents giving a neutral score
(7 or 8)
Detractors
respondents giving a negative score
(between 0 and 6)
Simple metric for everyone in your organization
Deceptively simple for respondents
Goes beyond the classic 'overall satisfaction' question
When someone recommends you, they risk their
reputation
Why use NPS?
Average Highest
What is a good NPS?
The NPS is a number between -100 and +100.
the average firm
sputters along at
an NPS of only
+5 to +10
the highest
performing ones
are situated
between
+50 and +80
Ad

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Net Promoter Score (NPS) - Measure Customer Satisfaction in 1 Question

  • 1. THE NET PROMOTER SCORE MEASURE CUSTOMER SATISFACTION WITH 1 QUESTION
  • 2. What is the Net Promoter Score? Customer Loyalty Metric Comparable over time and industries Easy Interpretable Customer Satisfaction Score Indication of the growth potential of your company or product One single question developed in 2003 by Fred Reichheld of Bain & Company in collaboration with Satmetrix
  • 3. How to calculate NPS? RESPONDENTS DIVIDED IN 3 CATEGORIES
  • 4. How to calculate NPS? Promoters respondents giving a positive score (9 or 10) Passives respondents giving a neutral score (7 or 8) Detractors respondents giving a negative score (between 0 and 6)
  • 5. Simple metric for everyone in your organization Deceptively simple for respondents Goes beyond the classic 'overall satisfaction' question When someone recommends you, they risk their reputation Why use NPS?
  • 6. Average Highest What is a good NPS? The NPS is a number between -100 and +100. the average firm sputters along at an NPS of only +5 to +10 the highest performing ones are situated between +50 and +80
  • 7. Don’t worry too much about external benchmarks Create your own baseline Measure continuously Report continuously What is a good NPS for you?
  • 8. Passives do not count Harder to make a passive a promoter Detractors share more Easier and better to convert a detractor to a passive Get everyone in your organization involved How to improve your NPS?
  • 9. Add open questions that probe the underlying reasons behind the low score Get notifications for low scores in real time Translate that feedback into actions to  Correct common complaints  Contact detractors quickly with an offer How to reduce detractors?
  • 10. Some critical remarks The model is too simple. Inaccurately measures customer behaviour No visible difference in % Promoters and % Detractors in final score Non-customers are not included There is no distinction between the scores 0 and 6 Value of a recommendation differs Usain Bolt vs. John Doe
  • 11. Conclusion NPS is a useful, simple metric Measure continuously Follow up continuously Report continuously Watch customer satisfaction and loyalty rise
  • 12. More info Read the full story Try a sample survey Look at sample NPS survey results (password: NPScore) Create your own free NPS survey
  • 13. CheckMarket can help We have a vast experience in NPS research Our experts can help you set up your NPS program We have a tool to measure NPS continuously You can organize and automate the follow-up We offer NPS dashboards with real-time results
  • 14. About CheckMarket CheckMarket is a company specialized in enterprise survey solutions www.CheckMarket.com www.twitter.com/CheckMarket www.linkedin.com/company/CheckMarket www.slideshare.net/CheckMarket