Measuring Value is hugely important yet is a famously difficult thing to do. Value is subjective and means different things to different people.
Net Promoter Score (NPS) is the world’s leading metric for measuring customer satisfaction and loyalty. It goes beyond measuring how satisfied a customer is with a company. The NPS system is designed to gauge the customer’s willingness to recommend your brand to others.
How to calculate the Net Promoter Score.
The most common way to calculate the NPS is to ask customers to rate (on a scale of 1-10) how likely it is that they would recommend your brand to a friend or colleague.
NPS is based on the principle that every organisation’s customer can be divided into three categories:
Promoters
Promoters represent a score of 9-10 out of 10. These customers are loyal enthusiasts who will keep buying, refer to others and fuel growth.
Passives
Passives represent a score of 7-8 out of 10. These individuals are satisfied but unenthusiastic customers who are vulnerable to your competitors' offerings.
Detractors
Detractors represent a score ranging from 0-6 out of 10. They are generally unhappy customers who can damage your brand, impeding your growth through negative word-of-mouth.
To calculate your company’s NPS, we take the percentage of customers who are Promoters and subtract the percentage who are Detractors. Passives are not accounted for in this calculation as their thoughts are recognised to be neutral, therefore, they may not engage in positive or negative word-of-mouth.
Calculating the NPS is the most effective way to manage customer experience and it allows businesses to capture consumer perception towards their brand.
RedAgile are Australia's leading Agile Scrum training provider certified by the Scrum Alliance. As Australia's best Scrum training provider we offer Agile Scrum training courses and consulting services both online and in-person. Our training portfolio includes: Certified Scrum Master (CSM) and Certified Scrum Product Owner (CSPO), Advanced Certified ScrumMaster (A-CSM) and Advanced Certified Scrum Product Owner (A-CSPO) as well as our new Certified Agile Leadership Essentials (CAL-E) and Certified Agile Leadership Teams (CAL-T) courses.
Commentaires