The Net Promoter Score – “the most important metric for business”

The Net Promoter Score (NPS) is a loyalty metric developed by Fred Reichheld. In his book ‘The Ultimate Question’, NPS is presented as the most important metric for business.

Developed for consumer marketing, the Net Promoter Score tracks how customers represent a company to their friends and associates. Reichheld argues that this consumer representation is free marketing that greatly influences business growth. Supporters of the method cite Apple as the company with the greatest NPS, and draw correlations to its recent growth.

Calculating the Net-Promoter Score

Reichheld advocates asking customers, “How likely are you to recommend our company to a colleague or friend?” His recommendation is for a 0-10 scale where respondents are reclassified as:

0-6 = “Detractors”

7-8 = “Passives”

9-10 = “Promoters”

Reichheld calculates the Net-Promoter Score by subtracting the percentage of respondents that are labeled “Detractors” from the percentage of respondents that are labeled “Promoters”, hence: % of Promoters – % of Detractors = NPS

For further information about NPS read the hubspot  interview with Reichheld

Completing brand strength analysis

Working with some of our clients, Competitive Advantage has developed a process which uses the Net Promoter Score concept to measure specifiers’ loyalty to leading brands. We ask the specifier how likely they are to specify a brand for a project. This can then be scored in the way described by Reichheld. By matching the results against the environment the specifier works in we can then give our clients a feel for their brand strength in various sectors. By repeating the research regularly our clients can track their performance comparing it with communication initiatives.

The research is conducted for a selection of non-competing brands, this brings down the overall cost and participants share some of the information allowing them to benchmark their performance against other leading brands. In an industry where companies merge or have a portfolio of brands it is particularly useful to track the impact of new identities.

Benefits of brand strength analysis:

  • A measure of return on investment for specification selling
  • A measure of the strength of your brand which can be tracked over time
  • Indication of brand strength for different sectors
  • Opportunity to benchmark your brand against other leading, but non-competing, brands

For more information or to participate email

Further reading:

About Competitive Advantage:

Competitive Advantage has been conducting construction research since 2000, we specialise in the provision of quantitative analysis of qualitative issues. In addition to bespoke market research we publish reports providing construction market information on a range of important subject.

We are experienced in the use of a range of research methods, including online surveys, telephone interviews, face-to-face interviews and focus groups, recommending the best option or combination to suit a project’s requirements.

Unlike many research companies, our commercial experience means that as well as reporting research findings we are able to interpret these effectively and make sound business recommendations.


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