“How likely are you to recommend us?”
A simple question – but the answer is not. The Net Promoter Score (NPS) is not just a KPI, but a powerful tool for understanding the voice of the customer.
The answer to the question is given on a scale of 0 to 10, with 0 indicating the least willingness to recommend and 10 the greatest. The ratings result in the following breakdown of customers surveyed:
- Ambassadors/promoters (9-10): The most loyal supporters and advocates, who enthusiastically recommend the brand.
- Passives (7-8): Satisfied, but not enough to become active.
- Critics/detractors (0-6): Critics who speak badly about the brand.
The Net Promoter Score (NPS) was introduced by Frederick Reichheld in his 2003 article “The One Number You Need to Grow” in the Harvard Business Review. It is based on the assumption that the willingness to recommend is a key indicator of long-term customer loyalty and growth.
From a psychological point of view, the NPS is based on the idea of “social validation”. This states that people only recommend something if they have a strong emotional connection to the brand or product. Studies have shown that NPS correlates with important business results, such as customer loyalty, repurchasing rates or sales growth. On average, promoters generate 2.5 times more sales than detractors.
At TEMA-Q, we also use the NPS in numerous surveys. Its simplicity, combined with a high level of customer focus and empirical validity, make it the perfect tool for evaluating general customer satisfaction. We prefer to combine the NPS question with open-ended questions that generate additional qualitative explanations. If the insights gained are used to implement specific improvements, this can strengthen the relationship with customers in the long term and stimulate sustainable growth.
Take a look at our LinkedIn profile at https://www.linkedin.com/company/tema-q/ to gain exciting insights into the world of customer and employee experience in the future.
If you have any questions about these or other topics, or would like a live demo version of ClaralytiX via video conference, click here to make an appointment or contact us.
Reichheld, The One Number You Need to Grow, 2003
Netigate, https://www.netigate.net/de/articles/kundenzufriedenheit/net-promoter-score/, 2023