by: Matt Rhodes

A metric we use a lot with clients at FreshNetworks is the Net Promoter Score (NPS). It’s a way of measuring the positive advocacy that exists for your brand; the word of mouth that is generated by your customers.

We then take the ratings that are given and divide them into Promoters (score 9 or 10, very strong advocates), Fence Sitters (those giving a score of 7 or 8 - where we’d expect most respondents to be), and Detractors (those giving a score of 6 or less, actively giving a poor score to your brand).

The Net Promoter Score is the difference between the percentage of people interviewed who are promoters and the percentage who are detractors. Or to put it more simply see the diagram below:

The NPS is known by some as the one number everybody in your business needs to know. And it is a powerful number - a way of encapsulating neatly and simply how likely people are to be advocates of your brand. Most companies would expect a score of between 5% and 10%, and those companies with fast-growing brands (such as Amazon or Dell) a score of between 50% and 80%. What’s more important than the absolute score, though, is the trajectory of travel - you want the number to be increasing over time.

We think that successful and sustained online engagement of customers online is the best way of increasing your Net Promoter Score - a way of building greater brand advocacy and more brand advocates.

Original Post: http://blog.freshnetworks.com/index.php/2008/03/20/what-is-the-net-promoter-score/

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