The Brand Integrity Customer Engagement Program uses the Net Promoter Score® (NPS®)* as a part of the Customer Loyalty Index to engage employees and establish a customer-centric culture that positively impacts the customer experience. NPS was developed by Fred Reichheld based on research by Satmetrix as a customer satisfaction and loyalty indicator that measures the likelihood of customers to recommend a company, product, or service to a friend or colleague.
When measuring customer loyalty, the answer to the basic recommend question (e.g., “Would you recommend this company to others?”) can provide a very accurate view. Respondents rate their likelihood to recommend on a 0-to-10 scale. The aggregate responses are then classified into one of three categories.
- Promoters (scores of 9 or 10): the customers who will actually refer your company.
- Passives scores of 7 or 8): customers who probably don’t refer you. (Although they may be satisfied, research says they won’t or simply don’t refer your company.)
- Detractors (scores of 0 through 6): customers who not only don’t refer you, but may actually speak badly about your company to other customers/prospective customers.
NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters for a score between -100 and 100. Taking the customers who are not so pleased and less willing to recommend into consideration within the calculation provides a more accurate picture of loyalty. Detractors may speak badly about your company and have a negative impact on overall perceptions in the marketplace, which diminishes loyalty.
Many resources exist for diving further into the philosophy behind the Net Promoter Score, but it is only one component of the Customer Loyalty Index measured in a Customer Engagement Program.
For more information about Brand Integrity’s Customer Engagement Program, contact your program administrator or check out the following articles:
*NPS is a registered trademark of Bain & Satmetrix