The NPS isn't just a great measure of customer loyalty—having high marks can also lead to business growth. ... The research shows that when companies adopt the NPS question, and use it as a key metric, it helps drive business growth as the company becomes more focused on improving the score.
Is Net Promoter Score outdated?
NPS is obsolete because so much has changed. Since the introduction of NPS, customers' expectations have soared and companies' access to information about them has increased dramatically.22 may 2019
Why is NPS problematic?
Problematic Assumptions. Some academics have suggested that the NPS classification system, which groups consumers into three buckets—promoters (those giving scores of 9 or 10), passives (7 or 8), and detractors (0 to 6)— is arbitrary and eliminates potentially useful information.18 oct 2019
How is an NPS score calculated?
Your Net Promoter Score is calculated by: Subtracting the percentage of detractors from the percentage of promoters. (The percentage of passives is not used in the formula.) For example, if 10% of respondents are detractors, 20% are passives and 70% are promoters, your NPS score would be 70-10 = 60.
How do you explain NPS to customers?
NPS stands for Net Promoter Score which is a metric used in customer experience programs. NPS measures the loyalty of customers to a company. NPS scores are measured with a single-question survey and reported with a number from the range -100 to +100, a higher score is desirable.