Best Practices

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Jun 26, 2019

The Drill-Down: Dialing Up Net Promoter Score

by Cherie Foo

If you’re familiar with the customer satisfaction space, you’ll probably have heard of Net Promoter Score, also known as NPS. Simply put, the NPS is an index ranging from -100 to 100, and it measures the willingness of customers to recommend a company’s products or services. Companies use the score to gauge their customers’ satisfaction levels, and determine how loyal they are to the brand.  In this blog post, we walk you through all you need to know about the NPS, including how it came about, how it stacks up against other metrics that measure customer satisfaction, and NPS best practices to keep in mind. Read on to find out more! The history of Net Promoter Score The NPS was created by Fred Reichheld, a partner at Bain & Company, back in 2003. Here’s the story: Reichheld realized that conventional customer satisfaction surveys weren’t effective in improving the customer experience, because the results of those surveys didn’t make it back to the front line in a “timely and individualized manner”.  In order to better establish accountability for the customer experience, Reichheld worked with a team from Bain and started researching different approaches that they could use. After testing a variety of questions, they found that the question “What is the likelihood that you would recommend Company X to a friend or colleague?” correlated the best with customer behavior. To unpack this more: when companies scored highly on this question, more often than not, they would also experience high repurchases, referrals […]

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