NPS Agreement: All You Need to Know About Net Promoter Score

If you are looking to measure customer satisfaction and loyalty, you might have heard of Net Promoter Score (NPS). NPS is a powerful tool that helps you gauge how likely your customers are to recommend your brand or product to others. However, to use NPS effectively, it is important to understand the concept of NPS agreement.

What is NPS?

Before we delve into the concept of NPS agreement, let`s quickly recap what NPS is. NPS is a customer loyalty metric that was developed by Fred Reichheld, Bain & Company, and Satmetrix in 2003. It is based on the premise that every customer falls into one of three categories:

1. Promoters: Customers who are extremely satisfied and loyal to your brand and are likely to recommend it to others.

2. Passives: Customers who are satisfied with your brand but might not recommend it to others.

3. Detractors: Customers who are unhappy with your brand and are likely to spread negative reviews.

To calculate your NPS, you need to subtract the percentage of detractors from the percentage of promoters. The resulting score ranges from -100 to 100, where a score of 100 indicates that all customers are promoters and a score of -100 indicates that all customers are detractors.

What is NPS agreement?

NPS agreement is a term used to describe the level of agreement between the NPS score and the actual customer behavior. In other words, it measures how accurate your NPS score is in predicting customer behavior, such as repeat purchases or referrals.

A high level of NPS agreement means that your NPS score accurately reflects customer behavior. For instance, if your NPS score is 80, and you have a high level of NPS agreement, it means that 80% of your customers are likely to make repeat purchases or refer your brand to others.

On the other hand, a low level of NPS agreement means that your NPS score does not accurately reflect customer behavior. In this case, you need to investigate why there is a discrepancy between your NPS score and customer behavior.

Why is NPS agreement important?

NPS agreement is important because it helps you understand the reliability and validity of your NPS score. If your NPS score has a high level of agreement, it means that you can rely on it to make business decisions. For instance, you can use it to identify opportunities to improve customer satisfaction and loyalty, or to track the effectiveness of your customer retention strategies.

However, if your NPS score has a low level of agreement, it means that you cannot rely on it to make business decisions. In this case, you need to investigate why there is a discrepancy between your NPS score and customer behavior. This may involve conducting additional research or surveys to identify the root cause of the discrepancy.

How to improve NPS agreement?

To improve NPS agreement, you need to ensure that your NPS score accurately reflects customer behavior. Here are some tips to improve NPS agreement:

1. Ensure that your NPS survey is designed correctly: Your NPS survey should be designed in a way that accurately captures customer sentiment and behavior. This may involve asking follow-up questions or using open-ended questions to better understand customer feedback.

2. Identify and address any bias in your NPS survey: Bias in your NPS survey can lead to inaccurate results. For instance, if your survey is only sent to customers who have recently made a purchase, it may not be representative of your entire customer base.

3. Segment your customers based on their behavior: Segmenting your customers based on their behavior can help you identify patterns and trends in customer behavior. This can help you improve your NPS score and increase NPS agreement.

In conclusion, NPS agreement is an important concept that helps you understand the validity and reliability of your NPS score. By improving NPS agreement, you can ensure that your NPS score accurately reflects customer behavior and use it to make effective business decisions.