Introduction: What is Net Promoter Score (NPS) and How Does it Work?
NPS is a customer loyalty metric that measures how likely customers are to recommend a company’s products or services to their friends and family. It is based on the idea that word-of-mouth recommendations are the most credible type of advertising.
NPS is calculated by asking customers a single question: “How likely are you to recommend our company/product/service to a friend or family member?”
Customers respond on a scale of 0–10, with 10 being extremely likely, 0 being not at all likely, and 5 being neutral. The score is then calculated by subtracting the percentage of people who gave a rating of 6 or lower (detractors) from those who gave it 8 or higher (promoters).
What are the Best Net Promoter Score Software Solutions in the Market?
The Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of a customer to recommend a company's products or services to others. It was developed by Fred Reichheld and Satmetrix in 2003.
There are many NPS software solutions available - some of them are free, while others come with a price tag. But before you choose any of them, it’s important to know what you need and what kind of features they offer.
Also read - The Ultimate Guide to Employee Net Promoter Score and How it Impacts Employee Engagement
How NPS Can Help with 5 Amazing Use Cases
Net Promoter Score (NPS) is an important metric that can be used to measure customer feedback. It is a type of customer satisfaction survey that asks respondents to rank their level of satisfaction on a scale of 0-10.
NPS can be used in five amazing ways:
1. Employee Engagement Survey - Employees at any company can use NPS to measure their company's engagement and identify areas for improvement. 2. Customer Feedback Research Tools - Companies can use NPS to find out what customers really think about the product or service they are using and how it compares with the competitors' products or services. 3. Customer Loyalty Program - Companies can use NPS as a loyalty program by rewarding loyal customers with discounts, free products, and other perks for being happy customers
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