• • "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?"

Calculating NPS

Based on the responses, customers are categorized into three groups:

• • Promoters (9-10): Loyal enthusiasts who will likely continue buying and refer others.

  • Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competition.

  • Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.

The NPS is calculated as the percentage of Promoters minus the percentage of Detractors. It ranges from -100 (all Detractors) to +100 (all Promoters).

Importance of NPS

• • Measures customer loyalty: Indicates how likely customers are to stay and recommend your business.

  • Identifies improvement areas: Helps pinpoint areas where customer experience can be enhanced.

  • Predicts business growth: A high NPS correlates with increased revenue and customer lifetime value.

By regularly measuring NPS and taking action based on the results, businesses can improve customer satisfaction, loyalty, and advocacy.

Improving NPS and Driving Business Growth with NPS

Improving Your NPS

A high NPS indicates strong customer loyalty and advocacy. Here are some strategies to improve your NPS:

• • Close the loop: Reach out to detractors and passives to understand their issues.

  • Act on feedback: Implement changes based on customer feedback.

  • Focus on customer experience: Enhance every customer touchpoint.

  • Set clear NPS goals: Establish targets and track progress.

  • Segment customers: Analyze NPS by customer segments to identify areas for improvement.

Using NPS to Drive Business Growth

• • Identify promoters: Leverage promoters as brand advocates.

  • Recover detractors: Win back lost customers through targeted efforts.

  • Understand passives: Identify opportunities to turn passives into promoters.

  • Measure ROI: Calculate the financial impact of NPS improvements.

  • Tie NPS to employee incentives: Create a customer-centric culture.

By effectively managing NPS, businesses can improve customer satisfaction, increase loyalty, and drive sustainable growth.