Net Promoter Score - NPS:-
The "net promoter score" for measuring customer loyalty is emerging as a favourite metric for organic growth. It is a simple measure of how well the business is meeting customer expectations. It is an indicator of the likelihood of repeat spend or word of mouth recommendation and a measure of potential growth of your business achieved by effectively satisfying customer expectations separating Good Profits from Bad Profits. This growth is the most cost effect way to increase profitability.
The Ultimate Question
One simple question - Would you recommend us to a friend or colleague? - allows companies to track promoters and detractors and produces a clear measure of an organisations' performance through its customers' eyes.
| Achieving Real Customer Satisfaction |
 Producing |
| Repeat Business and Customer referrals |
|
Creating |
| Cost Effective Sales Growth and Added Value |
|
Resulting in |
| Increased Profitability |
The Ultimate Question is:
Will my Customers Come Again to me and Recommend me?
|
Definitely No |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Certainly Yes |
|
Score -1 for each response here (Detractors) Make % of total samples |
Score 1 for each response here (Supporters) Make % of total sampled |
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To calculate your business' Net Promoter Score (NPS), take the percentage of customers who are promoters (those highly likely to recommend your company or products), and subtract the percentage who are detractors (those who are less likely to recommend your company or products). The equation below is how to calculate your NPS.
% of Promoters - % of Detractors = Net Promoter Score NPS
The Power of NPS
As all businesses are aware
it can take time and money to attract new
customers. If all this effort is being used just to replace existing unsatisfied
customers then the company will not grow and increase profitability.
A business' most effective advertisement is its satisfied customers who not only revisit but recommend. The best way to gauge your business effective growth engine is to calculate your NPS and develop strategies to monitor and improve this over time.
Companies with effective growth engines have an NPS of between 50 and 80%. The average company appears to have a 5 to 10% NPS and many firms currently score a negative NPS. Each company has room for improvement and future effective profit growth.
The Net Promoter Score is a powerful guide and used with Six Sigma Quality Techniques we can ensure that your business is equipped and motivated to drive its profitability forward by achieving the objective of "Completely Satisfying Your Customer Needs More Profitability".
We can help you measure and improve NPS and use a number of "Quality" concepts to examine your business.
These Tools and Techniques will not only help you identify areas of improvements but will also help in devising and implementing practical solutions that will allow your business to effectively meet your Critical Customer Requirements, achieving a better NPS and thereby increased repeat business and Profits.
For further information please contact us.
The Official Website for Net Promoter is www.netpromoter.com