"When you assume negative intent, you're angry. If you take away that anger and assume positive intent, you will be amazed." Indra Nooyi


NET PROMOTER SCORE – One Number You Need to Grow

On 11 Nov, 2017 | No comments

Treat your customers the way they want to be treated, and you will be successful


Net Promoter Score (NPS) is an important organ of today’s management world and is commonly practiced to gauge the customer loyalty towards an organization. It is an enhancement towards traditional customer satisfaction research which used to be carried out in the early phase of Customer Service Revolution.

Unlike the traditional methods of measuring customer satisfaction, It focuses on delivering 360* experience to the customer and capture their emotions for continual improvement.

NPS is developed by (and a registered trademark of) Fred ReichheldBain & Company, and Satmetrix Systems. It was introduced by Reichheld in his 2003 Harvard Business Review article “One Number You Need to Grow”.

NPS is for experience, not transactions.

Since NPS probes around the likelihood to recommend a company, it actually reflects the customer relationship and their experience while using a product or service. This metric does not only capture the effect of a transaction but rather seeks to understand the experience of the consumer and how does he/she feel about the brand.

Close Looping, Issue Understanding & Relationship Building are some of the most sought after objectives for conducting NPS.

So How does the Calculation work?

The Big Question – How likely is it that you would recommend [brand] to a friend or colleague?

The Score, on a scale of 1 to 10, falls into three groups.

  • If a customer scores you as a 9 or a 10, they are promoters.
  • If they score you as a 7 or an 8, they are passive.
  • And, a score of 0 – 6 means you have a detractor.


To determine your official NPS score, take the Promoters % and subtract the Detractors %.

That number is your Net Promoter Score.

Why NPS is important for an Organization?

  • Customer First Approach
  • Predicts Business Growth
  • Referability of Brand
  • Shift from Transactions to Experience
  • Holistic view of organization from Consumer perspective
  • Converting “big data” of customer feedback into insights
  • Immediate corrections and better faster issue resolution
  • Understand and collate Voice of Customer from all communication channels @ one single source.


The bottom line:

NPS success comes from the process, not the metric. Instead of obsessing about the specific metric being used, companies need to obsess about the system they put in place to make changes based on what they learn from using the metric.”

It’s not about the most recent experience. It’s about the overall experience. Use the NPS question in the right place, at the right time and for the right reason.

The Ultimate Goal: Great Customer Experience creates Great Organizations

Some Case Studies:


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