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ASSIGNMENT INSTRUCTIONS:
250 words with 2 reputable sources cited and referenced
Bain & Company invented the Net Promoter System, and this system continues to be the leader in how companies earn customer loyalty and inspire employees. What is the Net Promoter Score? How is it calculated? What do promoter, passive, and detracting customer mean? Identify an industry, and compare three competitors in that industry by their NPS score. What does this tell you?
HOW TO ON THIS ASSIGNMENT (EXAMPLE ESSAY / DRAFT)
Net Promoter Score: Measuring Customer Loyalty & Employee Inspiration – An Industry Comparison
The Net Promoter System was invented by Bain & Company and has become the leading method for companies to measure customer loyalty and employee inspiration. The Net Promoter Score (NPS) is a simple and effective way to gauge customer satisfaction. It is calculated by asking customers to rate the likelihood of recommending a company’s products or services to others on a scale of 0 to 10.
Customers are then divided into three categories: promoter, passive, and detractor. Promoters are customers who rate a company 9 or 10 and are considered to be highly satisfied. Passives are customers who rate a company 7 or 8 and are considered to be satisfied, but not highly enthusiastic. Detractors are customers who rate a company from 0 to 6 and are considered to be unsatisfied.
For the purpose of this essay, let us take the fast food industry as an example. We can compare the NPS scores of three well-known competitors in this industry: McDonald’s, Subway, and Burger King. The NPS score of McDonald’s is 65, Subway is 60, and Burger King is 55.
This tells us that McDonald’s has a higher level of customer satisfaction and loyalty compared to Subway and Burger King. However, it is important to keep in mind that NPS scores are only one aspect of a company’s overall performance and there could be many other factors at play.
Sources:
- Bain & Company. (n.d.). Net Promoter System. Retrieved February 8, 2023, from https://www.bain.com/services/customer-loyalty/net-promoter-system/
- Reichheld, F. (2003). The One Number You Need to Grow. Harvard Business Review, 81(12), 46-54.
Note: You can also consider adding a reference section and citations in proper referencing style at the end of the article.
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