Measuring Net Promoter Scores (NPS) helps businesses gauge customer loyalty, identify areas for improvement, and make data-driven decisions to drive growth and retention.
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Measuring Net Promoter Scores (NPS) is a critical step in understanding customer satisfaction and loyalty within an organization's business workflow. This score represents a company's ability to retain customers and drive growth through positive word-of-mouth referrals. In this step, businesses collect feedback from their customers by asking one simple question: "On a scale of 0-10, how likely are you to recommend our product or service to a friend or colleague?" The responses are then categorized into three groups: Detractors (scores 0-6), Passives (scores 7-8), and Promoters (scores 9-10). The resulting NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. This metric provides a snapshot of a company's performance, highlighting areas for improvement and opportunities to increase customer satisfaction and loyalty.
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