So you may have heard about “NPS” or “Net Promoter Score” and asked “what is it?” well we wanted to explain in a little more detail here. NPS is calcualted using the answer to a single question, using a 0-10 scale:
“How likely is it that you would recommend Argos to a friend or colleague?”
This is called the Net Promoter Score question or the recommend question. Respondents are grouped as follows:
Promoters: (score 9-10) are loyal enthusiasts who will keep buying and refer others, fuelling growth.
Passives: (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors: (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
It’s an industry recognised and standard definition so we can benchmark ourselves against our competitors. We can even benchmark against ourselves comparing against different departments within the business (e.g. Digital vs. Contact Centre) or the trend over time inline with releases or changes we make as a business.