What is NPS?

The Net Promoter Score (NPS) is a globally recognized metric for measuring customer experience and brand loyalty. It is based on a simple yet insightful question:

 “On a scale of 0 to 10, how likely are you to recommend this company to a friend or colleague? “

Based on their responses, customers are classified into three categories:

• Detractors (score 0-6): Unsatisfied customers who may damage your reputation through negative word-of-mouth.
• Passives (score 7-8): Generally satisfied but not fully engaged, they could be swayed by competitors.
• Promoters (score 9-10): Enthusiastic and loyal customers who actively recommend your brand, driving its growth.

The NPS is calculated as follows:

% PROMOTERS – % DETRACTORS = NPS

The resulting score ranges from -100 to +100. A positive score indicates a majority of loyal and satisfied customers, while a negative score highlights areas for improvement. For example, if 50% of customers are promoters, 30% are passives, and 20% are detractors, the NPS would be: 50 – 20 = 30.

Why is NPS an essential tool for customer experience?

A good NPS is a valuable asset, but to fully leverage it, it’s crucial to understand its causes and identify the most relevant type of NPS based on your goals. There are four main categories of NPS, each offering valuable insights:

• Transactional NPS: Measured immediately after a customer interaction, it helps quickly identify areas for improvement.
• Relational NPS: Based on the overall long-term opinion of customers, it serves as a barometer for the company’s reputation.
• Comparative NPS: Used to compare your performance against competitors and understand your perceived brand image.
• eNPS (Employee NPS): Evaluates employee satisfaction and engagement, directly impacting customer experience.

Note! What qualifies as a “good” NPS varies across industries. To interpret it correctly and set goals tailored to your sector, having in-depth expertise is essential. Our experts can guide you through this analysis and offer optimal strategies tailored to your business domain.

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Is NPS enough on its own?

Although NPS is a key indicator, it doesn’t provide detailed insight into the reasons behind customer satisfaction or dissatisfaction. To gain a more comprehensive and actionable view, it’s recommended to combine NPS with other tools, such as:

• One-Time and Voice of Customer Surveys (VoC): To collect detailed customer insights.
• Mystery Shoppers programs: To assess the real experience on the ground.
• Online feedback analysis: To decode trends and anticipate customer needs.

Boost your NPS and retain your customers!

A high NPS signifies a loyal and engaged customer base. But how do you turn these promoters into true brand ambassadors?

Our experts are here to help you implement sector-specific strategies that optimize your customer experience and maximize your performance.

Contact us now!