Explain the concept of Net Promoter score

Explain the concept of Net Promoter score - Chapter 7 and...

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Chapter 7 and Chapter 8 Questions and Answers 1 Chapter 7 and Chapter 8 Questions and Answers Your Name Course Name Date
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Chapter 7 and Chapter 8 Questions and Answers 2 Chapter 7 and Chapter 8 Questions and Answers Explain the concept of Net Promoter score. (Chapter 7, question 1, page 140 (Reviewing the Facts section)). The Net Promoter Score, or NPS, is a measure of the number of customers who are satisfied with a company’s services and who promote that company’s services to other, potential customers. An NPS is calculated by adding the number of customers who are “promoters,” meaning those who are “so delighted that they praise a product or service to all within earshot” and subtracting the “detractors,” meaning those who are unhappy with the services they have received from a company (Martin, 2008). The higher the score is the better a company becomes at getting its customers to advertise for it. In fact, a good NPS means that a company’s customers are its best sales force (Martin, 2008). In short, the NPS provides a measure of how well a company treats its customers and how effectively it uses customer service to generate profits. Why is the score important? (Chapter 7, question 2, page 140 (Reviewing the Facts section)). The Net Promoter Score (NPS) provides a company with information about how well it is taking care of customers and meeting their expectations. Based on this information a company can investigate the causes of a low NPS and then alter its business practices to improve that
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This note was uploaded on 09/20/2010 for the course ANM 8739 taught by Professor Morgan during the Spring '10 term at Alabama A&M University.

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Explain the concept of Net Promoter score - Chapter 7 and...

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