How is the net promoter score measured and calculated? What insights does the score provide to management? What does the score imply or mean for each of these ranges: 9-10, 7-8, and below 6? Describe the differences in behavior expected between “Promoters” and “Detractors”

The Net Promoter Score (NPS) provides a measure of customer loyalty and is a gauge to determine customer loyalty by conducting a survey. The calculation of the NET promoter score is based on a scale that determines values from 0 to 10 and it was likely to be recommended by the customers to his family, business and friends. The customers that give 6 points or below are the detractors, the customers giving a score of 7 or 8 are known as passives and the customers that give the score of 9 and 10 are called promoter (Ustomergauge. com, 2015).

In order to calculate the net promoter, score the detract percentage is calculated from the detractors and promoters. Consider if the 50% of respondents were promoters and at the same time 10% were detractors then the Net promoter score becomes 40. The score provides insight into the customer loyalty spectrum for different scores ranging from 0 to 10 (Ustomergauge. com, 2015).

References

Ustomergauge. com. (2015, 01 15). How to Calculate the Net Promoter Score: The Easy Way to Create Customer Loyalty. Retrieved from customergauge.com: https://customergauge.com/blog/how-to-calculate-the-net-promoter-score/