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Net Promoter Score

The most important proposed benefits of this method derive from simplifying and communicating the objective of creating more "Promoters" and fewer "Detractors" — a concept claimed to be far simpler for employees to understand and act on than more complicated, obscure or hard-to-understand satisfaction metrics or indices

In addition, the Net Promoter method reduces the complexity associated with measures of customer satisfaction. It provides a stable measure of business performance that can be compared across business units, across industries, and can trend changes in customer satisfaction over time.

The Net Promoter Score is obtained by asking customers a single question on a 0 to 10 rating scale, where 10 is "extremely likely" and 0 is "not at all likely": "How likely is it that you would recommend our company to a friend or colleague?"

Based on their responses, customers are categorized into one of three groups: Promoters [9–10 rating], Passives [7–8 rating], and Detractors [0–6 rating]. The percentage of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter score [NPS]. NPS can be as low as -100 [everybody is a detractor] or as high as +100 [everybody is a promoter]. The NPS is not a percentage but some people wrongly put a "%" sign after it, instead of correctly using "+" or "-" to show the result. An NPS that is positive [i.e., higher than zero] is felt to be good, and an NPS of +50 is excellent.

Companies are encouraged to follow this question with an open-ended request for elaboration, soliciting the reasons for a customer's rating of that company or product. These reasons can then be provided to front-line employees and management teams for determining what behavior changes need to be instituted resulting in a higher NPS Number. 

One common follow-up action is to call back customers engaging them in a discussion about the feedback they provided through the NPS survey process, solve problems, and learn more so they can coach team members on how to better interact with future new and repeat customers.

The Net Promoter system, process, and score motivate an organization to become more focused on becoming a World Class Customer-Centric Brand improving products, services, and their interactions with customers. The Net Promoter System and score correlate with profit and growth. 

Fred Reichheld first book on this topic was: The Ultimate Question: Driving Good Profits and True Growth. His newest book, just released in September, 2011 is: The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World. 

Watch our NPS Youtube videos

http://www.youtube.com/watch?v=vQLZq2DOEWM
http://www.youtube.com/watch?v=UvisTomud3A