Customer loyalty assessment using the Net Promoter Score (NPS) index is widely used in the research industry due to its effectiveness and simplicity.
Among the organizations confirmed to be using the method and its research results (including in official documents and reports) are major international and Russian companies - GE, Allianz, P&G, Apple, eBay, Amazon, Rostelecom, Ozon, Megafon, MTS, ROSNO, MIAN, Aeroflot, and virtually all companies in the banking and insurance sector.
The method is attributed to Frederick F. Reichheld, who first announced it in the article "The One Number You Need to Grow," published in the Harvard Business Review in December 2003.
1. Direct measurement of the NPS index
Consumers are asked to answer the question "How likely are you to recommend the company to your friends/acquaintances/colleagues?" on a scale of 0 to 10, where 0 means "I will definitely not recommend" and 10 means "I will definitely recommend".
Based on the ratings received, all consumers are divided into 3 groups:
The NPS index is calculated as the difference between the percentage of promoters and detractors:
NPS=% of promoters−% of detractors
2. Qualitative diagnostics
To formulate recommendations for improving the company's service operations, research participants are asked a second question: "Why do you think so?"
Answers to this question allow companies to identify the most important factors affecting the formation of consumer loyalty.
3. Evaluating interaction points helps the company understand the weaknesses and strengths of its service and formulate recommendations for improving its operational work.
For this purpose, research participants are asked to assess their satisfaction with individual elements of the company's service.
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