Net Promoter Score®
Net Promoter Score®”) is a method of measuring customers’ loyalty by sorting them into promoters, passives and detractors (see below, “Calculating Your Net Promoter Score®”). But more than that, NPS is a management philosophy, a way of running a business. Net Promoter companies commit to speciﬁc processes and systems that help everyone focus on earning the passionate loyalty of both customers and employees. The business payoffs are substantial. Loyal, passionate customers stay longer, spend more, contribute suggestions and sing your company’s praises to friends and colleagues. Loyal, passionate employees love working for you, come up with new ideas and go the extra mile to delight customers. That’s why loyalty correlates so strongly with sustainable, proﬁtable organic growth. On average, an industry’s loyalty leader grows more than twice as fast as its competitors.
“The beauty of Net Promoter® helps to simplify complex issues and helps people to make the right decisions. [It] makes people ask themselves: Is this the right thing to do for our customer, and is it economically appropriate for the ﬁrm?” CEO Walt Bettinger, ﬁnancial services ﬁrm Charles Schwab.