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Key Performance Indicators (KPI) by Bernard Marr

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19

Net promoter score (NPS)

Strategic perspective

Customer perspective

Key performance question this indicator helps to answer

To what extent are our customers satisfied and loyal?

Why is this indicator important?

Understanding how satisfied and therefore how loyal your customers might be is important for any company to know because happy and returning customers are likely to grow future revenues and profits.

The problem is that most customer surveys are complex, expensive and hard to interpret. In response to this, the net promoter score (NPS) was developed as ‘the one number you need to know’ based on just one simple question: How likely is it that you would recommend [company X or product Y or service Z] to a friend or colleague?

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