Net Promoter Score Calculations
Posted by fybmanager20 at March 16th, 2012
The Net Promoter Score (NPS) is a metric that tracks customer representation or customer loyalty. It is said to be one of the most important metrics for business. The score can be very effective and many businesses truly do benefit from using NPS. Those that calculate the net-promoter score will be able to view statistics and information that can influence business and help them make improvements. So this(Net Promoter Score) is necessary with a purpose to measure customer satisfaction, along with service quality perceptions in order to identify issues and tackle the exact cause of loyalty failure.
There is a particular way to calculate the Net Promoter Score. One will start the process with a question, and from there they will calculate scores. They will start by asking the question “How likely are you to recommend our company to a colleague or friend?” Responses are measured on a 0 to 10 scale. The responses numbers are grouped into different sections with different classifications. For example, there is a group for the numbers 0 to 6. The ones in this group are the “detractors”. The next numbers are grouped from 7 to 8. The ones in this group are classified as the “passives”. The last group is 9 to 10, which would be considered the “promoters”. Customers are scored and placed in one of these groups, and then the NPS calculation is made from there. It is set up to calculate the Net Promoter Score by taking the percentage of people that are in classified as “detractors” and subtracting them from the percentage of people who are famous as “promoters”. The percent of promoters minus the percent of detractors totals the Net Promoter Score.
Many prefer to use the NPS scoring system to measure customer involvement. Customer representation is important. The developer of the Net Promoter Score believed that consumer representation is free marketing and can have a big impact on business and the success of a business. Many people still have a belief that Net Promoter Score greatly influences the growth of business, and many use the NPS to help them measure and help their business grow.