The Net Promoter Score (NPS) is a standardized key figure in the Marketing and Customer Experience Management, which measures customer loyalty and the likelihood of recommendation. It was developed in 2003 by Fred Reichheld, a partner at Bain & Company, together with Satmetrix Systems. The aim of the NPS is to obtain meaningful feedback on customer satisfaction and customer loyalty in a simple way, which The company for their strategic orientation.
How the Net Promoter Score works
The determination of the NPS is based on a single, direct question asked of customers: „How likely are you to use our The company/product/service to a friend or colleague?“ Respondents give their answer on a scale from 0 (very unlikely) to 10 (very likely).
Based on this evaluation, customers are divided into three categories:
- Promoters (9-10 points): These are loyal and enthusiastic customers who actively generate positive word-of-mouth advertising and contribute significantly to the Growth of the company.
- Passive (7-8 points): These customers are satisfied, but not enthusiastic. They would probably recommend the company to others, but are susceptible to offers from competitors. They are not directly included in the calculation of the NPS.
- Detractors (0-6 points): These are dissatisfied customers who can damage a company's reputation through negative comments and have a low level of loyalty.
Calculation and meaning of the NPS
The Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters. Passive customers are not included in this calculation.
The formula is:
NPS = % promoters - % detractors
The resulting NPS value is between -100 and +100. A value of +100 means that all respondents are promoters, while a value of -100 means that all respondents are detractors. A high positive NPS indicates strong customer loyalty and high potential for organic growth.
Companies use the NPS to assess the quality of their customer experience (CX), create benchmarks and track changes in customer satisfaction over time. It serves as an important indicator of the company's success and helps to identify potential problem areas or strengths in products and services.
