Net Promoter Score (NPS)

Companies use the NPS because it is an accessible way to hear the voice of the customer and measure customer satisfaction. It provides immediate insight into how customers experience the products or services and where there is room for improvement.

How does an NPS work?

The NPS method works with one central question: "How likely are you to recommend us to a friend or colleague?" Respondents answer this question on a scale of 0 to 10.

The final NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. However, this score does not tell the whole story; we are convinced that the Net Promoter Score is not just about the final score, but rather about the explanation behind the score. A score alone does not mean much. Why does a customer not recommend your organization, product, or service? Is there an unresolved complaint? The explanation behind the rating also provides valuable information for improving customer loyalty.

The Net Promoter Score (NPS) is a good predictor of the degree of autonomous business growth (or decline) that an organization can achieve thanks to positive or negative advocacy, i.e., the degree to which it is recommended. Research shows that Promoters are loyal customers, purchase more products or services, and recommend their supplier to acquaintances more often. Promoters also generate 'more revenue and profit'. By also measuring the Net Promoter Score (NPS) of your competitors, you can compare how well your organization scores in this area compared to other organizations.