Friday, June 17, 2011

Simple tool - Net Promoter Score

Here's a tool that's been around for a while in the business world: Net Promoter Scores. NPS measures loyalty to a business or organization. It's a simple measure. Just ask,

"How likely is it that you would recommend this company to a friend or colleague?"

with an answer scale from 0 (low) to 10 (high).

What I find most interesting about NPS is how to interpret answers.

9-10 = loyal customers (promoters)
7-8 = neutral (generally satisfied, not in love)
6 and under = detractors (send negative messages)

To calculate an actual number for your overall NPS, you take Promoters/All Responses minus Detractors/All Respondents.

See an interesting discussion of application of NPS to Zingerman's: http://www.zingtrain.com/articles/zxi-a-new-way-to-measure-service/

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