Tuesday, 3 June 2008

The ultimate customer service question ...

There’s a fair amount of ‘buzz’ around customer service circles about using Net Promoter Scores to assess customer satisfaction.

The Net Promoter Score, (NPS) was designed by Fred Reichheld of Bain & Company and is obtained by asking the following simple question –

"On a scale of 0 – 10 (lowest to highest) How likely is it that you would recommend to a friend or colleague?"

The NPS is calculated by the following formula:-
% of Promoters - % of Detractors = Net Promoter Score (NPS)
  • Promoters are defined as those who score the question in the range of 9 or 10
  • Neutrals are defined as those who score the question in the range of 7 or 8
  • Detractors are defined as those who score the question in the range of 0 to 6
There are a number of recent articles that have been written on the subject. Genesys in conjunction with Callcentres.net has some information you can download.

In 2006 Associate Professor Mark Ritson,of the Melbourne Business School did some research into NPS in Australia. If you’re interested in looking at his research, click here.

The main purpose of this blog is to stimulate some local discussion around NPS. Feel free to comment on articles you’ve read or any other contribution. I’m keen to hear from anyone who is using NPS and the benefit it’s adding to your business. Maybe you have a contrarian view. Great let's hear it I’ll be making some further comments later myself.