Innovation and product launches across industries are keeping brands on their toes, making it increasingly challenging for them to plan for growth and market leadership. In this scenario, a deeper understanding of consumer sentiments offers a way of creating more informed products and services.

Net Promoter Score (NPS) is a single number metric that has undertaken this daunting task of measuring customer experience but has the management world divided. Although the tool has been adopted by a large subset of the Fortune 1000 companies, the jury is still out.


Brands are determined to understand if the popular tool can help them grasp consumer sentiments and therefore devise an effective growth strategy. To effectively implement the tool, insights are indispensable. Beyond that, the role of an insights provider has ballooned along with the confusion around the tool. The simple answer to whether it works is that NPS has been useful for businesses that are cognizant of the fact that several variables such as cultural attitudes and external factors affect outcomes. There is much to uncover about the metric that’s making noise in strategy meetings, and keeping the score for several big companies that have got it right.


NPS is a tool with the capacity to deliver noticeable results if used in conjunction with an insights expert. To break down how it works, it is measured by giving the customer a scale from zero to 10 for them to rate in relation to the brand. Although this information is not disclosed to those scoring, rating the brand a nine or 10 earns them the status of a ‘promoter’. Customers who rate brands between zero and six become ‘detractors’ and those marking them seven or eight are regarded as ‘passives’. NPS has gained popularity because of the simplicity involved. The final sum, when populated with customer data, is calculated by subtracting the net detractors from the net promoters.

Source of NPS Matters


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