Net Promoter Score

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Net Promoter Score (NPS), an index ranging from -100 to 100 measures a customer’s willingness to recommend a brand’s products/services to others. It also helps in understanding a customer’s overall satisfaction with the brand’s product/service and their loyalty towards the brand. This metric predicts business growth and helps in customer experience management programs.

NPS is calculated using 0-10 scale as the answer to key questions. Based on the response, it is classified into Promoters, Passives and Detractors. Promoters fall under a score of 9-10 indicating the loyalty of customers who will keep buying and referring to a brand’s product/service to others thereby boosting a brand’s growth. Passives fall under a score of 7-8 which means customers are satisfied but are enthusiastic about the brand’s offerings. These customers tend to choose over the brand’s competitors’ products/services. Detractors are customers who provide a score of 0-6 because they are unhappy with a brand’s offerings and are likely to damage your brand and its growth through unfavourable word-of-mouth.

For example, customers are surveyed on questions relating to a brand’s offerings. They are asked to rate the likelihood of recommending a particular brand to their friend or colleague on a scale of 0-10. Based on their ratings, customers are classified into promoters, passives or detractors. To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters to get the final Net Promoter Score. For example, if 10% of respondents are detractors, 20% are passive and the remaining 70% are promoters, then NPS is 70-10=60. This value could range between -100 to 100 helping you determine customer perception towards your brand and its offerings.

Rajagiri Centre for Business Studies is one of the best b schools in Kerala offers various graduation courses like MBA, MHRM, IMBA, PGDM etc. So if you are planning to do your MBA or PG program in top business school Kerala, Rajagiri Business School, top MBA colleges in Kerala is the right choice for you in the state.

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