The Net Promoter or Net Promoter (NPS) score is a management tool that can be used to evaluate a relationship loyalty with a company’s customer. It serves as an alternative to traditional search customer satisfaction and claims to be correlated with revenue growth. The NPS has been widely adopted with more than two thirds of Fortune 1000 companies using the metric.
Net Promoter Score is a client loyalty parameter developed by (and trademark) Fred Reichheld, Bain & Company and Satmetrix Systems. He was introduced by Reichheld in his Harvard Business Review article in 2003, “One Number You Need to Grow.” NPS can be from -100 (each is a detractor) or even 100 (all are promoters). A NPS that is positive (ie greater than zero) is considered good and a +50 NPS is excellent.
Net Promoter Score (NPS) measures the loyalty that exists between a supplier and a consumer. The supplier may be a company, employer or any other entity. The provider is the entity that questions in the search for network policies. The consumer is the customer, employee or agreed in a NPS search.