How to calculate the Net Promoter Score? | Alhorum

The NPS methodology is simple for the client – only 2-3 questions are asked and the number of respondents to the questionnaires increases. A business quickly obtains data on the loyalty of its customers.

How to calculate the Net Promoter Score index and what is its meaning?

Net Promoter Score can be translated as “net promoter index”, or “net consumer loyalty index”, or (by definition) “trade brand recommendation”.

The author of the technique, Fred Reicheld, proposed this technique in 2003 after many years of research on the correlation of business metrics of the interaction of loyal consumers with the company and the personal or emotional background of these relationships.

The strongest correlation was calculated between the commercial value of the client and his willingness to recommend a particular company to close people or partners. (link to original source)

This is not at all surprising – after all, we can answer the question “are you satisfied with our service” completely automatically and without being a loyal user, and the question “are you ready to recommend our company …” we analyze our communication with the company almost instantly and we mentally take responsibility for the answer.

The NPS methodology is simple for the client (and this is the most important thing) – only 2-3 questions are asked, as a result of which the number of respondents to questionnaires or surveys reaches 90%. Those. business quickly receives the most reliable data on the loyalty of its customers.

The physical meaning of the NPS loyalty index is that the company clearly sees the ratio of customers who will promote it for free (loyal consumers, promoters) and those who will dissuade acquaintances from cooperating with them (detractors).

With high values ​​of the user loyalty coefficient, the client base begins to grow on its own, because the number of positive recommendations exceeds the number of negative ones. This independent growth is due to the fact that today's consumers (both end and business partners) trust personal recommendations more than advertising.

Mathematically, it is possible to determine the minimum necessary ratio of supporters (promoters) and opponents (detractors), at which such a self-sustaining advertising campaign arises – for every dissatisfied client there should be 8 completely satisfied customers. This ratio corresponds to an average level of 30% user loyalty.

We recommend that you look at industry studies of loyalty in the banking, insurance, medical and technology sectors.

Loyalty of bank customers

Customer loyalty rating of 43 largest Russian banks. More than 6,000 opinions were processed for 43 banks, the average loyalty index according to the NPS method is 12.75%. The maximum index is 51.2%, the minimum is -6%.

Loyalty customers of insurance companies

Loyalty of clients of insurance companies

The study was commissioned by an insurance company.Research objectives: – compare the indicators of the NPS insurance company index with indicators of the loyalty index of other participants in the insurance market – to find out the main reasons for the dissatisfaction of customers of insurance companies and evaluate the company's position. Download research on research: – the loyalty index of customers of insurance companies was calculated according to the expanded technique of Net Promoter Score (NPS) […]

Loyalty customers of paid clinics

The rating of loyalty to customers of the largest commercial medical clinics in Moscow. The average loyalty index according to the NPS method is 25%. The maximum index is 71%, minimum -40%.

Study of the loyalty of customers of Moscow providers

The study was conducted by order of a large Moscow provider. Research objectives:

*SatMetrix is ​​a trademark of Satmetrix Systems, Inc. Net Promoter, NPS, and Net Promoter Score Trademarks of Satmetrix Systems, Inc., Bain and Company, Inc., And Fred Reichheld.