Nps net promotor score-by Niraj kumar
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The document discusses the Net Promoter Score (NPS), a customer loyalty metric. NPS divides customers into three categories: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6). Apple uses NPS to improve customer service and increase loyalty. Their NPS has risen from 57 to 72 since 2007 as they call each detractor and turn dissatisfied customers into loyal ones. NPS can help companies assess growth, benchmark performance, and focus on improving customer experience. However, some argue NPS oversimplifies loyalty and does not fully capture customer behavior.
Nps net promotor score-by Niraj kumar
- 1. NPS-NET PROMOTOR SCORE BY - N I R A J K U M A R
- 2. NET PROMOTER SCORE • NPS is based on the fundamental premise that every company’s customers can be divided into three distinct categories: • Net Promoter Score is a customer loyalty metric developed by (and a registered trademark of) Fred Reichheld, Bain & Company, and Satmetrix. DetractorPassivesPromoters
- 3. • Promoters • (Score 9 – 10 ) are loyal enthusiasts who will keep buying and refer others fueling growth for your company • Passives • Detractor
- 4. • Promoters • (Score 7 – 8 ) are satisfied customers but unenthusiastic and are vulnerable to competitive offerings. • Passives • Detractor
- 5. • Promoters • (Score 0 – 6 ) are unhappy customers who can damage your brand and impede your growth through negative word of mouth communication. • Passives • Detractor
- 6. NPS PROCESS
- 8. APPLE • Introduction of their retail stores was to improve their customer service rather than sell more products. • This has allowed Apple to increase their NPS from 57 to 72 since 2007. • Apple uses NPS to gauge how effectively each of their three- hundred plus stores is performing, daily. • Store managers personally call each detractor – someone who gave a 6 or less on the NPS survey. Research showed that each detractor who was successfully contacted could bring in on average an additional $1,000 in business within a year. • Via NPS, Apple has been able to change disgruntled consumers into loyal customers. Apple has doubled revenue over the past five years, from $108B to $215B.
- 9. WHY TO USE NPS • Assess at which stage your organization is in this growth process • NPS is used by many large companies as a customer feedback tool. • NPS also gives a good indication of growth potential and customer loyalty for a company or product. • Benchmark different areas or products, or check where your company positions itself versus the industry average if this is available. • Net Promoter Score can be used to motivate an organization to become more focused on improving products and services for customers
- 10. SOME CRITICAL REMARKS • Customer loyalty and satisfaction is not only about numbers and percentages, but also about causes, consequences and correlations. • NPS method cannot accurately measure customer behavior. • NPS is that it only takes into account customers, while also a lot of non-customers can act as detractors and generate bad word-of-mouth publicity. • NPS disregards important differences in the answer score distribution: no distinction is made between a 0 score and a 6 score, while there is obviously a substantial discrepancy between those two.
- 11. TOOLS
- 12. USER OF NPS
- 13. THANK YOU!