What are NPS reports?

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 -100 to +100, a higher score is desirable.

How is NPS measured?

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 benchmark a Net Promoter Score?

Benchmarking your Net Promoter Score, step by step

1. Step 1: Compare it with your industry average.
2. Step 2: Compare the score within a region.
3. Step 3: Consider the survey channel.
4. Step 4: Use your baseline NPS as your own benchmark.

What is a NPS goal?

Remember, NPS isn’t just a score. It’s a system that’s meant to drive business improvement in product and customer experience. Your goal is to boost customer loyalty and retention, and that happens by reading verbatim comments to understand the why behind the scores you receive.

Is there a common benchmark for Net Promoter Score?

The macro and micro factors existing in each industry, the level of customer experience expected and provided, the size of the industry are some variables that make it difficult to have a common benchmark for a Net Promoter Score. This also requires a business to monitor two variants of the NPS — absolute and relative NPS.

Who is the founder of the Net Promoter Score?

Fred Reichheld, a partner at Bain & Company, developed the net promoter score (also called the NPS or NPS score) in 2003. His goal was to give businesses a quick pulse-check to learn how well they were generating customer satisfaction and loyalty. Bain & Company’s website offers free literature on the Net Promoter System.

Which is the best definition of a Net Promoter?

Respondents are grouped as follows: Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth. Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

Is the Net Promoter Score a good measure of loyalty?

While the Net Promoter Score has gained popularity among business executives and is considered a widely used instrument for measuring customer loyalty in practice, it has also generated controversy in academic and market research circles. Scholarly critique has questioned whether the NPS is at all a reliable predictor of company growth.