The Net Promoter Score (NPS) is a key performance indicator used to determine a respondent’s likelihood to recommend a product or service to their network. In the article “Re-evaluating the Net Promoter Score,” authors Sarah Konkey and Julia Fox explain that companies believe it is an important growth measurement tool. The NPS consists of a rating scale from 0-10. The scores within the 0-6 range are detractors, the scores 7 and 8 are passives and the scores 9 and 10 are promoters. The NPS question is commonly phrased as: “On a scale of 0-10, how likely are you to recommend this product to a friend?”
NPS is often used to track a customer’s relationship with a brand or company over time. Alan Hale, author of “20 steps to make the Net Promoter Score more actionable for B2B,” believes that the NPS is used as a tool to measure customer loyalty, not satisfaction. The scale assesses the personal risk a respondent would take in recommending the product or service to a friend, colleague or family member based on the relationship they have with the company instead of the specific transaction they had.
A company will often use NPS when they want to measure its customer sentiment or satisfaction. While many believe the NPS is flawed, Hale argues that it should not be blamed for its incorrect usage. In “How to create raving fans in B2B markets,” he establishes that the rating will not be actionable if it is used incorrectly. Some companies use NPS when they need a benchmark to check on the progress they've made with the relationship they have with their customers.
While useful when used correctly, NPS is surrounded by controversy. Many believe it is an effective, efficient and low-cost form of measurement while others believe it is flawed and easily manipulated.
Individuals who participate in NPS surveys cannot fully express their opinions as their only feedback options are a range of numbers. NPS requir...