Net Promoter Score (NPS)

Net Promoter Score (NPS): Definition

The Net Promoter Score (NPS) is a key indicator used to measure customer satisfaction and loyalty with a brand, product, or service. It is based on a simple question asked to customers:

“How likely are you to recommend [the business/product/service] to a friend or colleague?”

Responses are given on a scale of 0 (very unlikely) to 10 (very likely). The NPS helps businesses assess the perception of their customers and identify areas for improvement.

Calculation method

Respondents are classified into three categories:

1. Promoters (score 9 or 10): Very satisfied customers who are likely to actively recommend the company.

2. Liabilities (score 7 or 8): Satisfied customers, but who are not particularly enthusiastic or loyal.

3. Detractors (score from 0 to 6): Dissatisfied or neutral customers who could damage the company's reputation.

The NPS is calculated as follows:

% of Promoters -% of Detractors

The final score varies from -100 (all customers are detractors) to +100 (all customers are promoters).

Interpretation

• Negative score : Global customer dissatisfaction, need for corrective actions.

• Score between 0 and 50 : Acceptable customer satisfaction, but with opportunities for improvement.

• Score greater than 50 : High customer satisfaction and loyalty.

Benefits of NPS

• Simplicity : A single question makes the assessment easy to administer and analyze.

• Comparability : Allows you to compare performance with competitors or between different periods.

• Actionable : Helps identify strengths and weaknesses to prioritize improvement efforts.

Limits

• Lack of nuance : A single question may not capture the full complexity of the customer experience.

• Context dependence : Scores may vary depending on industry or cultural expectations.

The NPS is a powerful tool for evaluating customer relationships and guiding improvement strategies, while providing a clear view of loyalty and potential word-of-mouth.