Net Promoter Score (NPS)

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Net Promoter Score (NPS)

A net promoter score is a score given to a company in relation to the service that they provide to their customers. To get this, a net promoter score survey is conducted by asking consumers a range of closed questions to ascertain how loyal they are.

The questions have 11 answers ranging from 0 (not at all likely) to 10 (extremely likely). The respondents are then put into a category depending on what scores they gave: detractors (score from 0-6), passives (from 7-8) and promoters (from 9-10).

A research study done by the London School of Economics showed that a net promoter score increase of 7 points resulted in a 1% growth in revenue. This shows the reliability and effectiveness of net promoter scores.

Net promoter scores are also advantageous in that they show the customer that they value their feedback. Furthermore, they can be used among employees as an unambiguous number in order to set targets and goals.

An example of the type of question that would be asked is ‘How likely would you be to recommend this product to a friend?’. This question requires the 0-10 scale and will get a quick and effortless response back. A series of questions like this will enable the researcher to give the respondent a score to put towards the overall net promoter score of the company.

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