What is NPS?
Net Promoter Score Survey Tool is a promoter metrics. It is developed and registered by trademark of Fred Reicheld, Brain and Company.
NPS is a survey tool which defines the customers satisfaction towards the service provided by the company .This was first introduced by Reichheld into his Harward Business Article “The One number you need to grow“.This is a metrics that not only defines company’s performance but also helps in evaluating employee performance, who are the first point of interaction with the customers.
Net Promoter Score Survey is calculated on the basis of the ratings i.e.; the Promoters or the Detractors provided by the customer. This is most crucial tool as it acts as a mirror for the company’s performance, its stability and further growth in the market.
NPS scores are based on the ratings provided by the customer on questions like:
Did the advisor you spoke to resolved your query?
How likely would you recommend this company to your friend or colleague?
Customer are required to answer such feedback based questions on the scale of 0-5 or 0-10 depending from company to company (where 0 being the least and 10 being the maximum).
On the basis of the questions answered by them, customers are divided into three categories:
- Promoter is a customer who rates you on 9 or 10, is the most satisfied customer and for him your company would be his first preference.
- Passive is a customer who rates 7 or 8 is more likely to be OKAY with the services provided. They are the ones “not too happy” and “not too disappointed” by the services.
- Detractor is a customer who rates you between 0-6, is a disappointed customer. When asked about their feedback regarding the company and its services, the customer would always provide the negative feedback thereby hampering the relationship with your loyal customers.