What is the Net Promoter Score (NPS)?

The Net Promoter Score (or NPS) is a standard measure of customer satisfaction.  This is how you test for NPS within your paid customer install base.

Show the product concept, then ask this question on a 10 point scale (1 = not at all likely, 10 = very likely):

  • “How likely is it that you would recommend [your product] to a friend [or family, or colleague etc]?”

Now you need to categorize the responses:

  • Promoters = 9, 10 – your loyal enthusiasts
  • Passives = 7, 8 – satisfied but unenthusiastic
  • Detractors = 0-6 – unhappy, can damage brand by word of mouth

Then you can calculate the Net Promoter Score as follows: (NPS)

  • NPS = % Promoters - %Detractors

As a matter of reference, in 2013, Apple laptop (the best scoring computer company) scored an NPS of 76%; Kaiser (best health insurance company) scored an NPS of 36%.  It is generally a good idea to look up the norms of NPS for your industry because NPS is not very transferable across industries (after all it will always be more pleasurable to use an iPhone or MacBookAir than to buy insurance!)

Read more here: http://www.netpromoter.com/why-net-promoter/know/

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