Articles on: Customer Satisfaction
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What is Net Promoter Score (NPS)?

Customer satisfaction is the backbone of any successful business. In today’s competitive world, keeping track of how happy your customers are can be the difference between thriving and failing. One popular tool that businesses employ to measure customer satisfaction is the Net Promoter Score, or NPS. But what exactly is NPS, and why is it so important? In this beginner’s guide, we will walk you through the basics of NPS and why it is a valuable asset for any business.

What is Net Promoter Score (NPS)?

NPS is a simple yet powerful tool used to measure customer loyalty and satisfaction. It was introduced in 2003 by Fred Reichheld, a business strategist, as a way for companies to gauge their customers’ likelihood to recommend their products or services to others. The beauty of NPS lies in its simplicity; it asks one fundamental question: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"

Breaking Down the Scores:

The responses to this question are categorized into three groups:

Promoters (9-10): These are your biggest fans. They love your product or service and are likely to recommend it to others.

Passives (7-8): These customers are satisfied, but not enthusiastic. They might stick with your product or service but are not likely to actively promote it.

Detractors (0-6): These are the unhappy customers. They are unlikely to recommend your product or service and might even discourage others from trying it.

Calculating NPS:

Calculating your NPS is straightforward. Subtract the percentage of Detractors from the percentage of Promoters. The result is a score that ranges from -100 to 100.

For example, if 70% of respondents are Promoters, 20% are Passives, and 10% are Detractors, your NPS would be 70 - 10 = 60.

Another example: 30% of respondents are Promoters, 50% are Passives, and 20% are Detractors, your NPS would be 30 - 20 = 10.

[Find the updated NPS score of THE PHOTO ACADEMY](

Why is NPS Important?

Simple and Universal: NPS is simple to understand and easy to implement, making it popular across various industries. Its standardization allows for meaningful comparisons between companies, or even between different periods for the same company.

Customer Loyalty Indicator: Since NPS is based on the likelihood of recommendations, it’s a good indicator of customer loyalty. Promoters are not only repeat buyers but also act as brand ambassadors.

Provides Actionable Insights: The NPS doesn’t just give a number; it gives a starting point for understanding customer sentiments. Companies can dive into why Detractors are unhappy and create strategies to convert them into Promoters.

How we make the most out of our NPS:

Regular Monitoring: We don’t just measure your NPS once; THE PHOTO ACADEMY monitors it continuously to track changes over time.

Engage with Respondents: We engage with Detractors to understand and address their concerns; we don't want to leave anyone behind in our mission to provide actionnable photography knowledge to customers.

Updated on: 14/07/2023

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