The Net Promoter Score℠* (NPS®) indicates customer satisfaction and the loyalty to a brand, shop or product. In addition, the NPS® is a key figure that can reflect the success of a company.
The NPS® basically consists of a single question that is randomly asked of customers: “How likely is it that you will recommend the brand/product/company to others?” Users can give their answer on a scale from 0 (very unlikely) to 10 (very likely).
Based on the answers, the users are divided into three groups:
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- Promoters: Promoters are customers who have chosen the number nine or ten on the NPS® scale. These are satisfied and loyal customers who are positive about the company or product, who continue to buy and recommend the product or company.
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- Passives: All customers who choose the number seven or eight are considered to be indifferent or passive customers. They would not actively recommend the company or product, but would not advise against it either. Accordingly, their passive behavior is not taken into account for the calculation of the Net Promoter Score℠.
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- Detractors: These include all respondents who have selected the number zero to six. Detractors are dissatisfied customers who are critical of the brand, shop or product and do not recommend it. Most likely they will not make another purchase.
Calculation of the Net Promoter Score℠
The NPS® is calculated from the difference of the promoters and the detractors:
(number of promoters – number of detractors) / (number of total customers surveyed) * 100, whereby the NPS® can assume a value between -100% and +100%.
A general statement on the NPS® that classifies the result as good or bad cannot be made. The results vary depending on the industry, shop and product selection. However, every positive value that is greater than zero and every negative value that is less than zero can generally be classified as good or bad. In conclusion, the more positive the NPS® is, the more positive is the result for the company.
*Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.