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
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
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.
2 comments:
Have you had a chance to look at the white paper from Genesys yet?
The following method is suggested "At the end of a call, customers could be invited to participate immediately, or offered
the possibility of being contacted later for their input."
Because the question is simple, it would be easy to capture the information via an IVR but I wonder if this method of obtain the information skews the results. If the customer is upset or really happy that may effect their response.
The article also suggests NPS are not enough. What other measures would augment NPS? It seems, (at least in 2007 when the article was written), that most contact centres are ignoring the value of Net Promotor scores.
If you're old like me you'll remember Julius Summner Miller who used to say, "Why is it so?"
This topic has generated some comment offline.
It's not quite sufficent to just ask the "ultimate question". If someone answers a 9 or a 10, the theory is that they are a "Promotor". This should be followed up with another question: "In the last 12 months, how many people have you recommended that company's products or services?"
That might be a more realistic measure!!
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