Another year is in the books for PrintForm, and after reviewing our projects and responses we’re pleased to announce our final NPS (Net Promoter Score) for 2018 was a 76! We can contribute this success to our fantastic teams that we hold to the highest standard of customer service. Special thanks for our customers and production teams for helping us achieve this massive accomplishment.
Why is NPS Important?
Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of an organization’s customer relationships. It serves as an alternative to traditional customer satisfaction research and is correlated with revenue growth. NPS has been widely adopted with more than two thirds of Fortune 1000 companies using the metric. Learn more about the NPS program here.
To put PrintForm’s score of 76 into perspective, here is a list of top companies and their respective scores:
- Audi (77),
- Subaru (76),
- Toyota (76),
- Apple (72),
- Mercedes-Benz (69),
- Netflix (68),
- Amazon.com (62),
- and Nike (32).
NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is considered good, and an NPS over 50 is considered excellent.
How is NPS Calculated?
The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale.
- Those who respond with a score of 9 to 10 are called Promoters.
They are considered likely to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers.
- Responses of 7 and 8 are labeled Passives.
- A score of 0 to 6 are labeled Detractors.
They are believed to be less likely to exhibit the value-creating behaviors.
The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. For purposes of calculating a Net Promoter Score, Passives count towards the total number of respondents, thus decreasing the percentage of detractors and promoters and pushing the net score towards 0.
The primary purpose of the Net Promoter Score methodology is to evaluate customer loyalty to a brand or company. The ability to measure customer loyalty is a more effective methodology to determine the likelihood that the customer will buy again, talk up the company and resist market pressure to defect to a competitor.