While over 20 years old, Net Promoter Scores (NPS) are still widely used for their simplicity to gauge customer loyalty. After 20 years however most things, including consumers change and move on.
Wikipedia tells us that NPS is simply “a market research metric that is based on a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague “.
NPS divides respondents into three categories:
The results are primarily used as an indicator for customer loyalty.
The net promoter score is calculated by the percentage of detractors from the percentage of promoters.
Despite the considerations above many entities continue to use NPS often taking a hybrid approach and extending it with other metrics and qualitative feedback to gain a better understanding of their customer loyalty but more importantly their experience.
While NPS provides a snapshot of customer loyalty, reviews can offer a more comprehensive and actionable insight into customer sentiment.
By leveraging customer reviews, businesses can easily obtain deeper insights, build trust, and ultimately drive more sales compared to relying solely on NPS.
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