Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction based on a single question: "On a scale of 0-10, how likely are you to recommend our product/service to a friend or colleague?" Customers are then categorized into three groups based on their responses:
- Promoters: Customers who give a rating of 9 or 10, indicating they are highly likely to recommend the product/service.
- Passives: Customers who give a rating of 7 or 8, indicating they are satisfied but not extremely enthusiastic about recommending the product/service.
- Detractors: Customers who give a rating of 0-6, indicating they are unhappy with the product/service and may not recommend it.
The Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score can range from -100 (if all customers are detractors) to +100 (if all customers are promoters). A higher NPS suggests higher customer satisfaction and loyalty, while a lower NPS indicates areas for improvement.
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