Net Promoter Scores Essay

Published: 2020-04-22 15:24:05
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Category: Value

Type of paper: Essay

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The Net Promoter Score is calculated by taking the percentage of Promoter customers and subtract the percentage of Detractor customers. The following is an example of a net promoter score calculation. 21 customers responded to their satisfaction of Product X on a 0-to-10 point scale. The results were 9,4,7,4,2,0,10,9,3,6,8,7,3,9,8,8,7,9,10,4, and 2. There are 6 Promoters, which is 28.6% and 9 Detractors, which is 42.9%. The percentage of Detractors (42.9%) subtracted from the percentage of Promoters (28.6%) is -14.3. This score means that there are more customers who are very unhappy with Product X and would not recommend it to others. This feedback could be relatively bad for the company that manufactures Product X. The NPS assists in the value of a company because it is greatly influences business growth.

One criticism of using Net Promoter Scores is that it is a measure of little value because it misses the predictors of future sales and growth. It is a substitute measure for satisfaction and quality. Highly interesting products will generate passionate customers, while other products are not interesting, nor are they discussed. This shows that the net promoter score does not report actual product buzz. Another NPS criticism is that the values are not numerically unique in meaning. For example, a company could have 60 percent promoters and 40 percent detractors, so the NPS would be 20. Another company could have 20 percent promoters and 0 percent detractors, with a NPS of 20. They both have an NPS of 20 but the companies are very different when comparing the percentage of Promoters and Detractors. This information concludes my Net Promoter Score paper assignment.


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