Brand Competition: Net Promoter Score (NPS)

A promotion has been long known as an essential part of a marketing mix. However, in most cases, the best marketing tools to persuade and ensure our customer to buy our product may not be effectively done by advertising. Advertising at some point may be beneficial to create brand awareness. However, in order to persuade customer, words of mouth or viral promotion through the suggestion from people we know well maybe more effective. Thus, it is important for brands to optimise their promotional effort using this channel. In order to understand how well our brand perform as it is promoted by our customer, we can conduct Net Promoter Survey (NPS). As cited from Medallia, NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand. Basically, in NPS customers are surveyed on one single question only, in which they are asked to rate on the 11-point scale about their likelihood to recommend a particular brand to others. The question itself may be done by asking, “On scale 0 to 10, how likely are you to recommend this brand to your family or friends?”.

According to the customer response, we may classify them into three categories. The first is the Detractors, customers who rate 0 to 6, in which they do not satisfied with company service and may potentially damage company reputation by spreading negative words of mouth. The second is the Passives, customers who rate 7 to 8, in which they simply satisfied enough with company service, but they don’t mind to swith to other brand. At last is the Promoters, customers who rate 9 to 10, in which they are repeat buyers or enthusiastic evangelist who are willing to recommend company’s product or service to other potential customers. Moreover, NPS is calculated by detract the percentage of Detractors from the percentage of Promoters. At some point, it is fine and very possible if the Net Promoter Score gained by particular brand is minus.

By using this NPS method, we try to measure the NPS of several brands in many categories. We try to compare particular brands’ NPS especially those who are facing head to head competition in the same industry field. Please kindly download our free report below to see how our respondent scores brand regarding their willingness to recommend it to others. In this report, you can find NPS from several brands from many industries, such as: