"Net Promoter Score, NPS" - analysis of promotion

  The goal of any promotional campaign is not only to increase sales but also to enhance customer loyalty to the company. This metric is usually much more important than current sales. Customer loyalty means how likely a client is to bypass competitors and use your company’s services.

  One of the methods to measure customer loyalty is the Net Promoter Score (NPS). Its essence lies in creating a survey and analyzing its results. The questionnaire should contain only one question: "How likely are you to recommend this company/product/brand to your friends/acquaintances/colleagues?"

 Respondents must give a rating from 0 to 10, where 0 is the worst score and 10 is the best. Sometimes, after a negative answer, additional information may be requested to help reveal the root cause of the problem. However, this is not recommended because the question should be simple and not take much of the respondent’s time.

  Several such surveys need to be conducted because one survey alone will not provide sufficient insights. The first survey should be done before the campaign, the second during, and the last a few days after the campaign.

 The method for calculating the Net Promoter Score is very simple. Respondents are divided into three groups based on their answers:
- Promoters (those who gave 9-10 points)
- Neutral consumers (those who gave 7-8 points)
- Detractors (those who gave 0-6 points)

  Neutral consumers should be excluded, and the difference between "promoters" and "detractors" is calculated.
NPS = "promoters" − "detractors".
The higher the score, the better.

  It is recommended to calculate this score as a percentage of the total number of respondents since the number of respondents may vary at different stages. The result will look like the following graphs:

  I would also like to note that this method has received much criticism. Therefore, I recommend using it only to analyze conducted events by comparing the score at different points in time.