Metrics for measuring customer loyalty

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NPS (Net Promoter Score)


NPS stands for Net Promoter Score and is the most commonly used method to measure customer loyalty.



It was first coined by Fred Reichheld, a researcher at US consulting firm Bain & Company, in his book The Ultimate Question. The question is: " How likely are you to recommend [organization X/product Y/service Z] to a friend or colleague ?"



Respondents then simply select a number between 0 (not at all likely) and 10 (extremely likely). The results are then broken down into three categories: Promoters, Passives, and Detractors. Promoters are bolivia telegram number database those who scored 9 or 10 and are the most loyal customers who will hopefully spread the word about your services online and among their friends. Passives are those who scored 7 or 8 and are satisfied but won't go out of their way to promote your services. Finally, Detractors are anyone who scored less than 6 and are unlikely to make repeat purchases from you, and may even discourage others from buying from your brand.



CSAT (Customer Satisfaction Score)



Another related metric is CSAT, or the Customer Satisfaction Score. Like NPS, CSAT is determined by asking the question, “How would you rate your overall satisfaction with the [goods/services] you received?” Customers then select a number between 0 (very dissatisfied) and 5 (very satisfied). You would then count the number of people who answered 4 (satisfied) and 5 (very satisfied) and divide that by the total number of survey answers to see the percentage of satisfied customers, or CSAT.



Compared to NPS, which measures customer loyalty over the long term, CSAT reveals customer satisfaction in the here and now and lets you know if customer expectations are being met in the present moment.