In today's competitive business landscape, customer satisfaction and retention are crucial for long-term success. Net Promoter Score (NPS) is a powerful metric that enables organizations to gauge customer sentiment and identify areas for improvement. In this article, we will explore what NPS is, how to calculate it, benchmarking considerations, real-world examples, and the services offered by GfK to enhance your NPS.

What is net promoter score (NPS)?

Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of customers recommending a company or brand to others. It is based on a simple question: "On a scale of 0 to 10, how likely are you to recommend our company/brand to a friend or colleague?" Respondents are then categorized into three groups: 

  • Promoters (score 9-10)
  • Passives (score 7-8), and 
  • Detractors (score 0-6). 

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. This provides a clear and actionable measure of customer loyalty and advocacy.

How to calculate the net promoter score (NPS)?

Calculating NPS is a straightforward process. Once you have collected responses to the NPS question, follow these steps:

  • Identify the percentage of respondents in each category: Promoters, Passives, and Detractors.
  • Subtract the percentage of Detractors from the percentage of Promoters.
  • The resulting number is your Net Promoter Score, which can range from -100 to +100.

Net promoter score benchmarks

Benchmarking your NPS against industry standards is essential to understand your performance and identify areas for improvement. NPS benchmarks can vary across industries, customer demographics, and B2B/B2C contexts. At GfK, we help you contextualize your NPS by analyzing industry-specific benchmarks and comparing against competitors, enabling you to set realistic goals and make informed decisions to enhance customer loyalty.

Net promoter score examples

To illustrate the practical application of NPS, let's explore a few examples. 

In the B2C sector, a renowned electronics brand achieved a high NPS by excelling in two key areas: exceptional customer service and consistent delivery of innovative products. This brand recognized that customer satisfaction is paramount to building long-term loyalty. They invested in well-trained customer service representatives who provided personalized support and went the extra mile to ensure customer satisfaction. By promptly addressing customer inquiries, concerns, and providing timely solutions, they created a positive experience that left customers highly satisfied. Additionally, the brand consistently introduced innovative products that met the evolving needs and desires of their target consumers. By staying ahead of the competition and delivering value-added solutions, they garnered a loyal customer base that enthusiastically recommended their brand to others.

On the B2B front, a software company focused on enhancing their NPS by adopting a customer-centric approach. They understood that in the B2B context, nurturing strong relationships and delivering value-added solutions were crucial for customer loyalty. The company proactively prioritized customer support, ensuring that their clients received timely assistance and prompt resolution of any issues they encountered. This proactive approach helped the company build trust and foster long-term partnerships with their clients. Additionally, they emphasized continuous product improvement, actively incorporating customer feedback to refine their software offerings. By addressing pain points, adding new features, and staying responsive to evolving market needs, they ensured that their customers consistently received the best possible solutions. Furthermore, the software company tailored their offerings to meet the unique requirements of each client, understanding that customized solutions were essential in the B2B space. This personalized approach strengthened their relationships, deepened customer satisfaction, and resulted in a higher NPS.

These examples demonstrate how organizations, both in the B2C and B2B sectors, can leverage NPS to drive customer loyalty. By understanding the specific needs and preferences of their target audience and aligning their strategies accordingly, companies can cultivate strong relationships, deliver exceptional experiences, and achieve high NPS scores.

Services to improve the net promoter score

GfK offers a range of services to help you enhance your NPS and drive customer loyalty. Our market intelligence solutions provide deep insights into customer preferences, expectations, and behaviors, allowing you to make data-driven decisions to improve the overall customer experience. Our consultancy services help you develop effective strategies based on NPS analysis, identify pain points, and implement targeted improvement initiatives. With GfK, you gain access to comprehensive resources and expertise to elevate your NPS and strengthen customer relationships.

How can GfK help improve your net promoter score?

At GfK, we combine our expertise in data analytics and market research to help you optimize your NPS. Our advanced data collection methods and robust analytics tools enable us to provide precise NPS measurement and analysis. With our consultancy services, we offer actionable recommendations to address critical areas for improvement, aligning your organization's efforts with customer expectations. Additionally, our comprehensive suite of products, such as gfknewron Consumer , equip you with the insights and pricing intelligence necessary to drive customer loyalty and business growth.

Conclusion

In today's customer-centric business landscape, NPS serves as a vital tool for measuring customer loyalty and advocacy. By understanding your NPS and leveraging the insights it provides, you can strengthen customer relationships, increase retention, and drive business growth. GfK is here to support you on this journey, offering data-driven solutions and expert consultancy to help you improve your NPS and unlock the full potential of your customer base.