NPS (Net Promoter Score) is a vital indicator for digital marketing and business management. It measures user loyalty with one simple question: “How likely are you to recommend our product or service?” This system, widely used by brands, is fundamental for evaluating customer satisfaction and predicting business growth. Understanding what NPS is, how it works, and exploring examples will help you recognize its role in optimizing the customer experience.
How NPS works
The Net Promoter Score is calculated by asking customers how likely they are to recommend your brand, product, or service on a scale from 0 to 10. Based on the score, customers fall into three categories:
Promoters (9-10). These are your most satisfied and loyal customers who will not only purchase again but also actively recommend you.
Passives (7-8). These customers are satisfied but not enthusiastic enough to recommend your brand.
Detractors (0-6). These are dissatisfied customers who could damage your reputation through negative word-of-mouth.
To calculate the NPS, subtract the percentage of detractors from the percentage of promoters. The result, ranging from -100 to 100, indicates your customers’ loyalty level. A positive NPS means you have more promoters than detractors, which is a sign of your business’s health.
At the same time, NPS in marketing helps identify areas for improvement in the user experience and informs strategic decision-making. In fact, implementing NPS software allows you to automate data collection and generate detailed reports to drive these improvements.
Examples of NPS
To better understand what NPS is in surveys and how it applies to digital marketing, here are several real-world examples:
1. Apple
With an average NPS of up to 72 points, Apple demonstrates how customer loyalty serves as a powerful driver of growth. This high NPS reflects users’ willingness to recommend Apple products to friends and family, helping maintain its dominant position in the tech market.
2. Amazon
Amazon has maintained a high NPS thanks to its efficient delivery and customer service. NPS results help identify areas where users may be dissatisfied (e.g., delivery times or service quality) and implement improvements to maintain customer loyalty.
3. Tesla
In multiple surveys, Tesla has achieved an NPS above 90, an exceptionally high score that reflects a highly loyal customer base. Tesla’s promoters are enthusiastic about both the vehicles and the company’s vision and mission, making them fervent advocates for the brand.
4. Netflix
Through regular surveys and leveraging Big Data, Netflix identifies its promoters and detractors to understand which series, movies, or features resonate most with users. With a generally high NPS, Netflix keeps users satisfied by offering a personalized content selection guided by NPS results.
In summary, understanding what Net Promoter Score is and what it’s for is essential for every brand manager. This powerful tool measures customer loyalty and drives growth by improving the user experience. As reflected by the data and real-life examples, an NPS system makes a significant difference in how customers perceive your business.