Introduced in 2003 by Fred Reichheld, the Net Promoter Score (NPS)® has become a popular metric of customer loyalty in industry. The NPS uses a single Likelihood to Recommend question (“How likely is it that you would recommend our company to a friend or colleague?”) with 11 scale steps from 0 (Not at all likely)
Netflix has been in the news a lot lately. Unfortunately for the wrong reasons. The popular home DVD and streaming movie services has come under a bit of a customer revolt after increasing pricing and changing services. While Netflix is largely a US based service and this controversy may only be temporary it does offers
Ask your customers if they’d recommend your product using a scale from 0 to 10 where 10 means extremely likely. Now find the average of the responses. Is an average score of say 7.212 good? It’s hard to say. Interpreting averages from rating scales is notoriously difficult unless you have something to compare the average
Responses to rating-scale data typically don’t follow a normal distribution. However, this is unlikely to affect the accuracy of statistical calculations because the distribution of error in the measurement is normally distributed. Top-box scoring of rating-scale data can provide an easy way to summarize or segment your data in the absence of a benchmark or
Would you recommend your cell-phone to a friend? How about the rental car company you just used? Customer loyalty is an important attribute of a product or service’s long-term viability. There are many ways to measure the construct of customer satisfaction and loyalty and they usually involve questionnaires, such as the American Customer Satisfaction Index
