Net Promoter Score (NPS)
In this article we will tell you more about the Net Promoter Score (NPS). We explain what the NPS means, how you calculate the score and explain how you can make it part of usability testing.
What is the Net Promoter Score?
The Net Promoter Score is a tool used to measure a company's customer loyalty - and is said to have a direct link to revenue growth and customer retention. The tool was developed in 2003 by Fred Reichmann and published in the Harvard Business Review. Its popularity has increased enormously ever since.
You measure the Net Promoter Score by asking customers one simple question:
How likely is it that you would recommend this company to friends and colleagues?
Depending on the answer given by the respondent, he can be classified in one of the following categories:
The critics (0 - 6) are people who have given a score of six or less. This group of customers is dissatisfied and can damage a company's reputation through negative word of mouth.
The passively satisfied (7 - 8) are people who have given a score of seven or eight. These are satisfied customers, but not necessarily enthusiastic about the delivered product or service. They are subject to competitor offers.
The promoters (9-10) are people who have given a score of nine or ten. They are loyal customers who are enthusiastic about the delivered product or service. They share their experience with other people and stimulate further growth of the company.