Net Promoter Score (NPS)
Published:
Net Promoter Score, or just NPS for short, is a way of mesure the loyalty of a customer based on recomendations. The core idea of it is to ask the customers one single question:
- How likely is it that you would recommend our company/product/service to a friend or colleague?
That question is evaluated between 0 and 10.
- Between 9 and 10 are promoters.
- Between 7 and 8 are passives.
- Less than 7 are detractors.
The main formula is to substract detractors to promoters and divide for the size of the whole sample mulplied per 100. That gives a value between -100 and 100. Positive values are claimed to be good.
That score is meant to substitute more complex and dedicated metrics. It claim to correlated with business metrics and growth.
The truth is that the measure is simplistic and does not give any insights. It could be useful to have some clue but it is not giving any strategical insight out of it.
The main basics relies on recommendation and so for the network value. But even it could be truth that the essence of the metric (likely of recommend) is correct and helpful, the simplistic and direct way to ask it breaks with the main idea of surveys (people is likely to just ask quickly but not properly in order to get rid of the questions).
See also
Papers
- Reichheld, Frederick F. (diciembre de 2003). One Number You Need to Grow. Harvard Business Review.