Analysis

Tuesday, December 15, 2020

The Net Promoter Score (NPS), the point after + 10 years of operation

The Net Promoter Score (NPS), the point after + 10 years of operation

After the publication of the book "The Ultimate question" in 2003, formalizing the birth of the NPS, and after 10 years of SatisFactory using the indicator in around a hundred organizations in various sectors, it's time to take stock:
What is the feedback?
Does the indicator live up to its promise?

What is NPS?

The NPS consists of asking the question, most often formulated as follows: "Would you recommend brand X to your friends and family?

The answer is given on a scale from 0 ("Not at all") to 10 ("Absolutely"). The NPS score is calculated by subtracting the % of detractors (answers 0 to 6) from the % of promoters (answers 9 and 10).

NPS is an absolute number that can range from -100 (where all customers are detractors) to 100 (where all customers are promoters).

This score has established itself worldwide as THE indicator for measuring an organization's ability to delight its customers.

Where are we today?

We note that the NPS phenomenon has not diminished over time, nor has it been dethroned by any other indicator.
The most obvious reasons for its success are :
- It's used: to benchmark against subsidiaries, competitors and other industries.
A sensitive indicator that reacts quickly and makes it easier to see the impact of actions taken.
A score that is known to senior management, enabling them to mobilize all staff and implement and manage a customer-centric policy.
- A high-performance score that measures the improvement in customer loyalty over time.

 

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