BUY WITH CONFIDENCE
DESCRIPTION
The Net Promoter Score (NPS) is used to gauge client happiness and customer loyalty. It is founded on a single survey question that asks participants to rate their propensity to suggest an organization, item, or service to others. NPS was created by Fred Reichheld, Bain & Company, and Satmetrix and has become well-known for its clarity and open methodology.
Calculating NPS follows a 3-step approach:
1. Survey Customers
2. Categorize Respondents
3. Calculate NPS
Customers are segmented into 3 groups based on their responses:
1. Promoters – These customers are extremely happy customers who aggressively promote a brand. They give a value of 9 to 10 to the company. These are the folks we want to cultivate because they account for more than 80% of recommendations.
2. Passives – The folks are content but not actively involved in the promotion. This group's repurchase is 50% or less than that of the promoters. They are more influenced by other people and are more likely to change their minds if others do.
3. Detractors – These customers voice displeasure and endanger a company's reputation. They give the organization a score ranging from 0 to 6. They may appear profitable at first, since they are acquiring customers, but their overall effect of encouraging others not to purchase is damaging to the company as a whole.
The percentage of detractors is subtracted from the percentage of promoters. This final score is used to measure Customer Loyalty. This method is used by many organizations, including Fortune 500 companies, to enhance their goods and services and monitor consumer happiness over time.
With an understanding of how NPS is calculated, organizations can evaluate their Customer Loyalty objectively and track improvements over time, helping them stay ahead in today's competitive landscape. Organizations can skyrocket their NPS by converting detractors into promoters.
This PowerPoint presentation discusses how to calculate and obtain the NPS for your organization. This deck also includes slide templates you can use in your organization presentations.
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Source: Best Practices in Customer Experience, Customer Loyalty PowerPoint Slides: Net Promoter Score (NPS) PowerPoint (PPTX) Presentation, LearnPPT
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We are a team of management consultants trained by top tier global consulting firms (including McKinsey, BCG, Deloitte, EY, Capgemini) with a collective experience of several decades. We specialize in business frameworks based on real-life consulting engagements.
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Customer Loyalty Net Promoter Score Customer Satisfaction Customer Experience KPI Product Management Cognitive Bias Employee Management
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