The document discusses the Net Promoter Score (NPS), a customer loyalty metric. NPS divides customers into three categories: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6). Apple uses NPS to improve customer service and increase loyalty. Their NPS has risen from 57 to 72 since 2007 as they call each detractor and turn dissatisfied customers into loyal ones. NPS can help companies assess growth, benchmark performance, and focus on improving customer experience. However, some argue NPS oversimplifies loyalty and does not fully capture customer behavior.

1. NPS-NET
PROMOTOR
SCORE
BY - N I R A J K U M A R

2. NET PROMOTER SCORE
• NPS is based on the fundamental premise that every company’s customers can be
divided into three distinct categories:
• Net Promoter Score is a customer loyalty metric developed by (and a registered
trademark of) Fred Reichheld, Bain & Company, and Satmetrix.
DetractorPassivesPromoters

3. • Promoters • (Score 9 – 10 ) are loyal
enthusiasts who will keep
buying and refer others
fueling growth for your
company
• Passives
• Detractor

4. • Promoters • (Score 7 – 8 ) are satisfied
customers but
unenthusiastic and are
vulnerable to competitive
offerings.
• Passives
• Detractor

5. • Promoters • (Score 0 – 6 ) are unhappy
customers who can
damage your brand and
impede your growth
through negative word of
mouth communication.
• Passives
• Detractor

6. NPS PROCESS

7. DATA COLLECTION

8. APPLE
• Introduction of their retail stores was to improve their
customer service rather than sell more products.
• This has allowed Apple to increase their NPS from 57 to 72
since 2007.
• Apple uses NPS to gauge how effectively each of their three-
hundred plus stores is performing, daily.
• Store managers personally call each detractor – someone who
gave a 6 or less on the NPS survey. Research showed that
each detractor who was successfully contacted could bring in
on average an additional $1,000 in business within a year.
• Via NPS, Apple has been able to change disgruntled
consumers into loyal customers. Apple has doubled revenue
over the past five years, from $108B to $215B.

9. WHY TO USE NPS
• Assess at which stage your organization is in this growth process
• NPS is used by many large companies as a customer feedback
tool.
• NPS also gives a good indication of growth potential and customer
loyalty for a company or product.
• Benchmark different areas or products, or check where your
company positions itself versus the industry average if this is
available.
• Net Promoter Score can be used to motivate an organization to
become more focused on improving products and services for
customers

10. SOME CRITICAL REMARKS
• Customer loyalty and satisfaction is not only about
numbers and percentages, but also about causes,
consequences and correlations.
• NPS method cannot accurately measure customer
behavior.
• NPS is that it only takes into account customers, while
also a lot of non-customers can act as detractors and
generate bad word-of-mouth publicity.
• NPS disregards important differences in the answer score
distribution: no distinction is made between a 0 score
and a 6 score, while there is obviously a substantial
discrepancy between those two.

11. TOOLS

12. USER OF NPS

13. THANK YOU!