Net Promoter Score

Net Promoter Score

Net Promoter ScoreIn these reviews we’ve used the concept of Net Promoter Score (NPS). Its a survey method which measures if customers are likely to recommend a product or a service to a friend, colleague or other person in their social network.

In NPS the person being surveyed responds using a 0-10 scale with 0 as the lowest (Your product? Never!) and 10 as the highest (All my family already uses your product!) score. Depending on answers, your customers divide to:

  • Promoters (9-10) – if they score 9 or 10 the are an enthusiast, who fuel growth and spread the word about products and services. Think about Apple user – they will try to convince everybody to use company’s products.
  • Passives (7-8) – if they score 7 or 8 they are satisfied customers, but with no “WOW” effect. They will use the product, but with no enthusiasm or devotion. Think about typical banking services. They work, but you probably are not that enthusiastic to spread the world about them.
  • Detractors (0-6) – if they score 6 or less then they are unhappy customers, who will never say something good about brand and are likely to discourage others to use your products.

Amazon currently uses a 5-star rating system

  • 5 stars: I love it
  • 4 stars: I like it
  • 3 stars: It’s OK
  • 2 stars: I don’t like it
  • 1 star: I hate it

We’ve used 4 and 5 star ratings (liked it or loved it) as Promoters and 1 and 2 star ratings (didn’t like it or hated it) as Detractors and 3-star ratings as Passives (its OK).

The NPS (Net Promoter Score) is the difference between the percentage of Promoters and the percentage of Detractors.

The NPS score can vary from +100 (everybody loves it – 100% 5-star ratings) to -100 (everybody hates it – 100% 1-star ratings)

The bigger the NPS figure the better.

 

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