We have categorized 4 documents as NPS. All documents are displayed on this page.

As Fred Reichheld, the Bain & Company consultant behind the concept, once opined, "By substituting a single question for the complex black box of the typical customer satisfaction survey, the Net Promoter Score can turn the complex task of executing customer feedback into a pulse that even CEOs can understand."Learn more about NPS.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.


Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

    The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

    – Dennis Gershowitz, Principal at DG Associates
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

    The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

    – Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar Hernán Montes Parra, CEO at Quantum SFE
  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World
  •  
    "FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

    – Roderick Cameron, Founding Partner at SGFE Ltd
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group



Flevy Management Insights: NPS

As Fred Reichheld, the Bain & Company consultant behind the concept, once opined, "By substituting a single question for the complex black box of the typical customer satisfaction survey, the Net Promoter Score can turn the complex task of executing customer feedback into a pulse that even CEOs can understand."

For effective implementation, take a look at these NPS best practices:

Explore related management topics: Customer Satisfaction Net Promoter Score Feedback

NPS Defined

At its core, the Net Promoter Score (NPS) is a measure of customer loyalty to a company. It is computed by asking the simple question—On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague? The answer provides a quick gauge of a customer's perception of your brand or service, and a high NPS indicates levels of customer satisfaction and loyalty that are crucial for Strategic Planning and Business Transformation.

Explore related management topics: Business Transformation Strategic Planning Customer Loyalty

Importance of NPS

As reported by Deloitte, businesses that prioritize customer experience generate 60% higher profits than their competitors. Accenture goes a step further, finding that 52% of global consumers have switched providers due to poor customer service. A high NPS allows your business to remain in the highly competitive market space, aiming for Operational Excellence and Value Creation.

Explore related management topics: Customer Service Operational Excellence Customer Experience Value Creation

Best Practices in NPS Calculations

According to the Harvard Business Review, correctly implementing NPS entails more than simply subtracting Detractors (scores 6 and below) from Promoters (scores 9 and 10). It’s an exercise in Change Management and requires the following steps:

  • Consistently measure NPS and track your results over time.
  • Avoid common pitfalls like sampling bias and over-surveying.
  • Address customer feedback immediately and transparently.
  • Incorporate NPS into a broader performance metric suite.

Explore related management topics: Change Management

Integrating NPS into Business Strategy

As Forrester reports, top performers in customer experience outperform laggards on the S&P 500 index by nearly 80%, making NPS a non-negotiable KPI in any Strategy Development framework. Integrating NPS into your business strategy involves:

  1. Developing a company-wide culture that prioritizes customer satisfaction.
  2. Aligning customer experience initiatives with overall business goals.
  3. Designing products or services from the customer perspective, a practice also known as Design Thinking.

Explore related management topics: Design Thinking Strategy Development KPI

NPS as a Key Performance Indicator

The McKinsey Quarterly suggests that NPS is an essential Performance Management indicator. Being a forward-looking indicator, it offers insights into future revenues, making it ideal for Risk Management and Strategy Development. For robust Performance Management, executives need to:

  • Improve NPS consistently to enhance customer loyalty.
  • Encourage customer feedback and act on it promptly.
  • Use NPS as a basis for executive compensation and incentivization.

Explore related management topics: Performance Management Risk Management

Transforming NPS Feedback into Strategic Initiatives

According to the MIT Sloan Management Review, companies that efficiently turn customer feedback into strategic initiatives demonstrate greater market leadership and Innovation. Key areas to focus on include:

  1. Directly addressing customer concerns raised in NPS surveys.
  2. Emphasizing continuous improvement in quality and service across all levels of the organization.
  3. Focusing on proactive customer service to avoid issues before they arise.

In the words of Gartner, "Customer experience is the new competitive battleground." As we continue to see the global marketplace evolve, the ability to adapt to customer needs and deliver exceptional experiences will continue to be a defining competitive advantage for companies. Remarkably, the simplicity and effectiveness of NPS make it a unique tool in this quest.

Explore related management topics: Competitive Advantage Continuous Improvement Leadership Innovation

NPS FAQs

Here are our top-ranked questions that relate to NPS.

How does NPS correlate with actual business growth and profitability in various industries?
NPS is a key predictor of business growth and profitability, with its impact varying across industries, necessitating industry-specific strategies and integration with broader Strategic Planning and Performance Management efforts. [Read full explanation]
How is the increasing importance of sustainability and corporate social responsibility affecting NPS scores across industries?
The growing consumer demand for sustainability and Corporate Social Responsibility (CSR) is significantly enhancing Net Promoter Scores (NPS) across industries by influencing purchasing decisions and brand loyalty. [Read full explanation]
What is the role of NPS in evaluating the effectiveness of customer service chatbots and virtual assistants?
NPS is a vital metric for assessing customer satisfaction and loyalty with chatbots and virtual assistants, guiding improvements and strategic decisions for business growth. [Read full explanation]
How can integrating NPS feedback into product development cycles enhance customer satisfaction and loyalty?
Leverage NPS Feedback in Product Development cycles to drive Innovation, enhance Customer Satisfaction, and increase Loyalty, fostering a culture of Continuous Improvement. [Read full explanation]

Recommended Documents

Related Case Studies

NPS Strategy Development for Telecom in Competitive Landscape

Scenario: A telecom company, operating in a highly competitive market, is grappling with stagnating Net Promoter Scores (NPS) despite increased investment in customer service and experience.

Read Full Case Study

NPS Strategy Reinvention for a Forestry Products Leader

Scenario: A top-tier firm in the forestry and paper products sector is grappling with stagnating Net Promoter Scores (NPS) despite consistent product quality and customer service investments.

Read Full Case Study

Net Promoter Score Advancement for Food & Beverage Sector

Scenario: A firm in the food & beverage industry is facing challenges with stagnant or declining Net Promoter Scores (NPS) despite increased investment in customer experience initiatives.

Read Full Case Study

Net Promoter Score Analysis for Aerospace Defense Firm

Scenario: An aerospace defense company is facing challenges with a stagnant Net Promoter Score (NPS) despite recent investments in customer experience improvements.

Read Full Case Study

Net Promoter Score Enhancement for Telecom Provider

Scenario: The organization is a mid-size telecom provider experiencing a plateau in customer loyalty and satisfaction.

Read Full Case Study

Net Promoter Score Advancement for Telecom in Competitive Landscape

Scenario: A leading telecommunications firm in a highly competitive market is observing stagnation in its customer loyalty and retention metrics, as indicated by its Net Promoter Score (NPS).

Read Full Case Study

Explore all Flevy Management Case Studies




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.