Company
Date Published
Author
Charlotte Swan
Word count
1945
Language
English
Hacker News points
None

Summary

Today, Net Promoter Scores (NPS) are an essential tool for product management, used by two-thirds of Fortune 1000 companies and Instabug's most popular user feedback feature. NPS is a simple yet effective survey that asks how likely users are to recommend a brand to a friend on a scale of 0-10. This score can be correlated with company growth and is measured by subtracting the percentage of Detractors from the percentage of Promoters. A score above zero indicates more Promoters than Detractors, while scores below zero indicate more Detractors than Promoters. NPS has proven to be a highly effective indicator of customer loyalty and future sales, with Promoters being 92% more likely to make repeat purchases than Detractors. The Net Promoter System was introduced by Frederick Reichheld in 2003 and has since become a standard across industries. To use NPS surveys effectively, companies should focus on asking simple questions that can be answered quickly, such as the standard NPS question and a follow-up question to understand the primary reason for the score. By analyzing NPS results and addressing customer concerns, companies can improve their mobile app and increase customer loyalty.