Customer Experience

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Jan 08, 2024

What is NPS & How to Measure It? [Detailed Guide]

by Sogolytics

Introduction: The Loyalty Economy Imagine a world where your customers aren’t just satisfied—they’re evangelists. They rave about your product to friends, defend your brand online, and stick with you even when competitors slash prices. But in a world flooded with choices, how do you turn casual buyers into vocal advocates? Enter Net Promoter Score (NPS), a metric used by two-thirds of Fortune 1000 companies to measure one question—‘How likely are you to recommend us?’—this holds the key to predicting growth, spotting churn risks, and turning buyers into die-hard fans. But here’s the catch: Many companies collect NPS scores, celebrate a “good” number, and miss the bigger picture. Detractors slip through the cracks, passives remain indifferent, and growth stalls. In this guide, we’ll decode NPS, how to measure it accurately, and how to turn passive customers into promoters. Plus, we’ll share free templates and tools to help you start building a tribe of brand evangelists. Let’s dive in. What is Net Promoter Score (NPS)? NPS measures customer loyalty by asking one simple question: “How likely are you to recommend our company/product/service to a friend or colleague?” Respondents rate their likelihood on a 0-10 scale, categorizing them into: Promoters (9-10): Loyal enthusiasts who refer others. Passives (7-8): Satisfied but unenthusiastic customers. Detractors (0-6): Unhappy customers who may damage your reputation. Calculation: Introduced in 2003, NPS has become the gold standard for predicting growth. While CES focuses on effort and CSAT on satisfaction, NPS reveals long-term loyalty and advocacy—making it a cornerstone of […]

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