Subject areaMetrics and measurement
Also known asNet Promoter Score
NPS (Net Promoter Score, the propensity to recommend) is the metric that measures how likely customers are to recommend a company to others.
It asks a single question, "How likely are you to recommend this company to a friend or colleague?", on a scale from 0 to 10. Those who answer 9 or 10 are promoters, those who answer 0 to 6 are detractors; NPS is the share of promoters minus the share of detractors. The metric was proposed by Frederick Reichheld in 2003.
In the site's articles NPS appears among customer-focused metrics, next to customer satisfaction and customer lifetime value. On its own it says how willing customers are to vouch for the company; therefore it is read together with the open answers, which explain the reason behind the score.
Source: Frederick F. Reichheld, «The One Number You Need to Grow», Harvard Business Review, dicembre 2003.
An example
A manufacturing company selling mechanical components asks customers, after every delivery, how likely they are to recommend the supplier to a colleague. If detractors cluster among customers served by a single warehouse, the problem is logistics, not sales.
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Enrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com
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