How likely are you to recommend our company to other – the original question net promoter score uses to determine the loyalty of its customers. If you are wondering what is net promoter sore, well it a measurement tool companies and businesses use to metric customer loyalty. This software application is a convenient solution for many companies and small business that want to get an insight into their customers’ demands and wishes. In this case, you ask them a straightforward question, and they rate your service and products on sale from 0 to 10.

Calculation

Depending on the score achieved, there are three categories of people that are distinguished: Promoters that provide 9 or 10 rating, Passives that give 7 or 8 score and Detractors that offer 0 to 6 score. You can directly calculate the net promoter score by using the difference between the percentage of Promoters and Detractors. For example, if you have 25% Promoters, 55% Passives and 20% Detractors, your NPS score will be +5, which is still good. Anything higher than 0 is generally considered as a positive thing.

What is an average score?

In the last couple of years, NPS is used in many large companies as a customer’s feedback tool. It provides your organization an accurate data which is easy to understand and which can help you boost your business. According to many users, the NPS is also an excellent indication of the growth potential and customers’ loyalty to a company or a brand. An average American company has a score less than +10 in the NPS, while the highest performing business has between +50 and +80. The value may depend on services you are providing and location.

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Some critics’ remarks

From a scientific perspective, there is some skepticism and people aren’t sure whether they should trust the data NPS provides, stating that the entire model is too simple. They claim that customer loyalty isn’t about the numbers and percentages, but there are a lot of factors involved, such as causes, consequences, and correlations. It is also stated that NPS method can’t precisely measure the customer behavior. At some extent we agree with this, but why not use a software that doesn’t cost you a penny. It still can provide you some information regarding your company and help you boost up your manufacturing process. For example, if results are too bad, then that’s a sign that you need to change something.

Conclusion

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While the NPS might not be sufficient as a management tool, it still can provide you some valuable information, and it has a right framework. Its most significant advantage is simplicity which makes it functional for every business owner. Considering that a large number of big companies use this software application on a daily basis, we have to conclude there is something good about it. The NPS should be your starting point, and after the analysis the real work can begin, which is improving your organization and boosting your NPS.

 

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