
Why Is Net Promoter Score (NPS) So Important?
Calculating customers’ loyalty was never an easy task. One metric most businesses used in the past is to check the purchase history of customers. However, this cannot be effective for all industries. In the telecom industry, for instance, consumers may keep making purchases because the service is necessary but not that the company is great at delivery. Therefore, in a bid to find out about customers’ loyalty, businesses are turning to surveys and evaluation metrics to determine which customer is likely to recommend them to their friends and why. One of these evaluation metrics is the “Net Promoter Score,” or NPS. What Is Net Promoter Score? The Net Promoter Score or NPS (as it is generally called) was co-developed by Fred Reichheld of Bain & Company, and Satmetrix Systems as a method of measuring customer loyalty. This score is used to measure the level of loyalty that a customer