Net Promoter Score (NPS)
Net Promoter Score (NPS) is a metric used to measure a customer’s satisfaction level with the product or service. Important business decisions and product enhancements depend not only customer reviews but also NPS. It is usually conducted in a survey-like marketing activity where you directly ask the customers about the product and how much would they would score it based on their experience.
Importance of NPS
NPS is directly related to the performance of your business as it can be a potential predictor for the company’s growth. If your NPS is more than average industry standards, you will know that you have a positive relationship with your customers. This will ensure a regular flow of positive reviews and word-of-mouth marketing and that will spur smooth business continuity in the long run.
How to analyze a good NPS?
Any score above 50 out of 100 can be considered good enough. NPS of Top-tier companies like Amazon, Google, PayPal, etc range around 50-70.
However, you should not consider any score between 0-50 as ‘bad’ because that only indicates, you have enough space for improvement in certain areas.
Scores below 0 require stringent restructuring in the product to amp up more promoters and not detracters.