NPS meaning in Computing ?

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What is Net Promoter Score mean?

Net promoter score (NPS) is a widely used market research metric that typically takes the form of a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague. The NPS is a proprietary instrument developed by Fred Reichheld, who owns the registered NPS trademark in conjunction with Bain & Company and Satmetrix. Its popularity and broad use have been attributed to its simplicity and transparent methodology of use.

The NPS assumes a subdivision of respondents into "promoters" who provide ratings of 9 or 10, "passives" who provide ratings of 7 or 8, and "detractors" who provide ratings of 6 or lower. Usually, users of the NPS perform a calculation that involves subtracting the proportion of detractors from the proportion of promoters collected by the survey item, and the result of the calculation is typically expressed as an integer rather than a percentage. The core How likely would you be to recommend... question is sometimes accompanied by additional open-ended or so-called "driver" questions.

The NPS is typically interpreted and used as an indicator of customer loyalty. Employee net promoter score, or in short eNPS is said to help measure how loyal employees are, similar to NPS. In some cases, it has been argued to correlate with revenue growth relative to competitors, although it has also been demonstrated that NPS scores vary substantially between industries. NPS has been widely adopted by Fortune 500 companies and other organizations. Proponents of the Net Promoter approach claim the score can be used to motivate an organization to become more focused on improving products and services.: 199–200 As of 2020, versions of the NPS are now used by two-thirds of Fortune 1000 companies.

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Posted on 08 Dec 2024, this text provides information on Miscellaneous in Computing related to Computing. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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