Net Promoter Score (NPS)

NPS provides a clear and easily interpretable customer satisfaction score which can be compared over time or between different industries.  The NPS assesses to what extent a respondent would recommend a certain company, product or service to his friends, relatives or colleagues. The idea is simple: if you like using a certain product or doing business with a particular company, you like to share this experience with others.  (Source: http://www.checkmarket.com/2011/06/net-promoter-score/)

Using a 0-10 “Likelihood to Recommend” scale, respondents are grouped in the following way:

0-6: “Detractors”
7-8: “Passives”
9-10: “Promoters”

NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. It can range anywhere between -100 to 100.

NPS

Source: HVSStrategies.com.

American Customer Satisfaction Index (ACSI)

The American Customer Satisfaction Index (ACSI) uses customer interviews as input to a multi-equation econometric model developed at the University of Michigan’s Ross School of Business.  A brand’s ACSI is determined by utilizing the responses to three survey questions addressing:

  • Overall satisfaction
  • Comparison to expectations
  • Comparison to an ideal

The calculation of ACSI from these variables involves both survey scores and weights applied dependent on the type of business and industry.  When industry-specific weights are unavailable, assume assuming equal weighting to all three inputs.  ACSI is then an index calculated from the simple average of all three questions.

More information on the ACSI, including benchmark scores, is available here.

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