NPS stands for Net Promoter Score. It is a metric used by businesses to measure customer satisfaction and loyalty. NPS is calculated based on responses to a single question: "On a scale from 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?" The results classify respondents into three categories:
To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters. It is a useful tool for gauging the overall satisfaction with a company's products or services and predicting business growth.
Understanding NPS helps businesses identify the reasons behind customer sentiment, which can guide improvements in products and services. Here are some benefits of using NPM:
By regularly measuring and analyzing NPS, companies can be more proactive in making decisions that enhance customer relationships and drive sustainable growth.
NPS is distinct because it measures customer loyalty and propensity to advocate for a brand, rather than just satisfaction. Here are a few points that set NPS apart from other metrics:
While other metrics may provide deeper detail on specific aspects of the customer experience, NPS offers a broad measure of customer advocacy and potential growth impact.
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