Tuesday, September 12, 2006

Net Promoter Score (NPS)

A company earns good profits when it so delights its customers that they not only come back for more – they recommend the company to others. Satisfied customers become, in effect, part of the company’s marketing department. They become promoters. A simple technique can help you distinguish good and bad profits. Ask your customers to answer what we call “the ultimate question”: How likely are you to recommend this company to a friend or colleague? Ask them to rate their answer on a scale from 0 to 10. The responses will help you tally a metric we call the Net Promoter Score (NPS). NPS has been shown to correlate well not only with customer referrals and repurchases, but also with company growth rates. Customer responses cluster into three groups.

For Complete IIPM – Editorial , Please Click on IIPM-Editorial Link

Source:- IIPM-B&E , Initiative:- Prof. Arindam Chaudhuri - 2006

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