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[eBook] Learn all about NPS: definition, collection, and calculation
“Would you recommend Critizr to your family and friends?” Regarded as a “deciding factor” by its creator, the Net Promoter Score is the recommendation indicator you’ve surely already heard plenty about. The Net Promoter Score principle is relatively simple and the ultimate driver behind its success. That said, you may have found yourself reading anything and everything about it in scattered places online. This is why we, as NPS experts, have decided to release this e-book, designed to be a proper introductory guide to NPS.
What did you say? You haven’t heard of it? Net Promoter Score, or NPS, is a customer recommendation indicator that has a strong presence and has been used extensively in English-speaking countries for several years now.
Now the norm in these countries, companies are well-accustomed to NPS and it has even started to ring a bell with consumers. In the United States, it is also an effective promotional tool for brands who aren’t afraid to use it to its full advantage. NPS scores of large companies are regarded as public information and can be accessed by all consumers.
In France and Europe, NPS has gradually found its place among the vast array of indicators available to research centres and marketing companies. As such, it is being scrutinised more and more by large companies across all sectors. This attraction to NPS is due above all to the current business sphere.
Most major franchises are facing enormous competition in mature markets. Customers now have so much choice that they are becoming more demanding, their expectations have increased and it’s harder to keep them happy and loyal. The thing is, in this environment, it’s essential to hold onto customers. Research conducted by Source has shown that spending on customer acquisition is 5 times higher than on customer retention.
The prime feature of NPS is exactly that: it allows you to measure your customers’ recommendation levels and as a result, their loyalty and interaction levels. This data is intrinsically linked to growth. Following a study conducted by Bain & Company, NPS can explain 20-60% of fluctuations in growth rates, depending on the industry. Major franchises such as Apple, American Express and Amazon consider NPS as the deciding factor, and one of the most reliable KPIs.
For a more in-depth look, we've decided to create not one, but two e-books on the subject of NPS. The first book, which can be downloaded at the end of the article, serves as an introduction to NPS. From theory to methodology and collecting data, we’ve covered all the basics to master NPS! The second e-book, titled “Become an Expert on NPS: Closing the Loop” will give more in-depth information on how to analyse and use this indicator within your company.
Whether you’re a professional in marketing or customer relations, we highly recommend reading our e-book introducing you to the subject of NPS. In less than 15 minutes, you will have learned about all the concrete data related to this must-have indicator revered by the biggest companies worldwide !