Considerable share of business profit is generated due to crucial base of loyal customers. Businesses need a universal and simple metric to measure loyalty of both own and competitors’ customers. Net Promoter Score (NPS) is one of the most commonly accepted ways of measuring customer experience and predictors of business growth. The metric was developed in 2003 by management consultant Fred Reichheld.
NPS estimates net share of customers who are ready to promote the product to others. The score is measured with 11-point scale according to which the customers are categorized into 3 groups:
Promoters: loyal enthusiasts who will keep buying and refer others, accelerating growth
Passives: satisfied but unenthusiastic customers who are sensitive to competitive offerings.
Detractors are unhappy customers who can damage your brand and impede growth by discouraging others.
R-Insights provides comprehensive analytics of NPS metrics outlining multi-level attraction and detraction reasons, disaggregating behavioral sub-groups, modeling loyalty and measuring influence of touch points on NPS.