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The Net Promoter Score or NPS was unveiled in the Harvard Business Review 2003 by Fred Reichheld of Bain and Company. The full article is here. The arresting title was:

“The One Number You Need to Grow”

It is considered an alternative to standard methods of customer satisfaction measurement and helps to link customer satisfaction with loyalty and revenue growth. Whilst it has attracted its own criticism, It is very popular – in fact, NPS has been widely adopted with more than two-thirds of Fortune 1000 companies using the metric.

Cutting to the chase, Opiniator now has the Net Promoter Question – as part of its standard arsenal of questions. Customers can now be surveyed on this single question. Specifically, they are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague.

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

Based on their rating, customers are then classified in 3 categories: detractors, passives, and promoters.

Detractors’ gave a score lower or equal to 6. They are not particularly thrilled by the product or the service. They are unlikely to purchase again from the company, could potentially damage the company’s reputation through negative word of mouth. We have highlighted some of the issues with this before.

Passives’ gave a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them.

Promoters’ answered 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.

So What is the NPS?

The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score. At one end of the spectrum, if when surveyed, all of the customers gave a score lower or equal to 6, this would lead to an NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.

How do we Present the NPS with Opiniator?

We use two charts. The first shows the distribution of each of the three groups, and the second is the time series for the location or group. Note also in the second chart we automatically include an organization average score (the red line) – so the business can if the location or group of locations scores above or below the organization.

Net Promoter Score Chart