Even if you don’t know what the NPS index is, you’ve probably encountered it. For example, when you received an email asking, “How likely are you to recommend our company on a scale of 0 to 10?” The answers to this question are used to calculate the customer loyalty score.
Score is a “customer loyalty index” or “willingness to recommend i accurate mobile phone number list ndex,” and today two-thirds of Fortune 1000 companies use it. Intuit product managers have been checking NPS every day since its invention 17 years ago.
NPS first became popular in 2003 after Frederick Reichheld’s article in the Harvard Business Review. He presented the results of a study aimed at finding out how customer loyalty affects a company’s growth rate. Havmeasured the NPS of more than 400
American companies, Reichheld
A found that the average across industries was 16%, while giants like eBay and Amazon had 75%. The conclusion was obvious.
The only way to profitable growth is for a company to make its regular customers essentially its marketing department.The article had its critics, but during this time NPS has proven its effectiveness. Today, it is used not only in business, but also in many other industries. For example, it is used by the UK National Health Service.
How NPS is calculated
The company asks customers to rate the likelihood that they wiommend it to friends and acq data on uaintances on a ten-point scale. Those who give from zero to 6 are considered critics, 7-8 are neutral consumers, 9-10 are loyal (“promoters”). Then the percentage of each segment is calculated, critics are subtracted from loyal ones – and NPS is obtained.
If all customers are critics, NPS will be -100, supporters – 100. A number above zero is already good
The beauty of the method is that it can be used to measunyth 4 basic tips for call-to-action buttons and their surroundings ing: how convenient it is to place an order on a website, the work of a delivery service, or even an individual call center employee. How to do this? We’ll tell you using the example of our new product, Net Promoter Score