Net promoter score is a metrics used by companies to evaluate customer satisfaction, employee satisfaction and to select appropriate suppliers or a business partner.
Customer net promoter score survey is conducted in order to assess company’s performance by evaluating customer satisfaction and customer loyalty.
Supplier Net Promoter Score Surveys are conducted in order to select an appropriate supplier. While conducting the survey other companies in the industry are surveyed to understand their likelihood to recommend different supplier to others so that NPS for each supplier can be calculated. The supplier with best NPS score can then be appointed by the company.
It is a method of measuring willingness of employees to recommend the employer to friends and family.
Respondents are asked how likely they are willing to recommend the product, company or a supplier to others. The respondents have to give a score between 0-10 scales. According to the score the respondents are segmented into three broad categories:
Respondents who score either 9 or 10 are called as promoters. Promoters are loyal to the company; they are highly satisfied with the company and are likely to recommend the same to others.
Passives score either 7 or 8. They are satisfied with the company but can easily switch to a competitor’s offering. They will not spread negative reviews of the company but will not enthusiastically promote the company.
Respondents who score between 0 and 6 are called as detractors. They are dissatisfied with the company and will not repurchase. They can spread negative reviews and will not recommend the company to others.
NPS is calculated by subtracting percentage of respondents who are detractors from percentage of promoters. The NPS score falls between -100 and 100.
