What is a Net Promoter Score (NPS)?

TL;DR

Net Promoter Score (NPS) is a metric used to measure stakeholder satisfaction in various industries, including project management.

Transcript

in this video I want to answer the question what is a net promoter score and how can we calculate it in project management the net promoter score is a metric to measure stakeholders responses to something it's widely used in market research to measure customers perceptions of products and services it's also been adapted to measure employee satisfac... Read More

Key Insights

• 📽️ The Net Promoter Score is a metric used to measure stakeholder satisfaction in various industries, including project management.
• 🙃 The concept of NPS was developed in 2003 by Fred Reichelt and is now owned by Bain and Company.
• 🔨 The Project Management Institute (PMI) included a reference to NPS in its Project Management Body of Knowledge (PMBOK) as a tool to measure stakeholder satisfaction.
• 😷 Project managers can adapt the NPS methodology to measure stakeholder satisfaction by asking stakeholders to rate their own satisfaction on a scale of 0 to 10.
• ⚾ The NPS categorizes stakeholders into promoters, passives, and detractors based on their ratings of satisfaction.
• 📽️ Promoters are enthusiastic supporters, passives are content but not enthusiastic, and detractors are unhappy with the project.
• ✖️ The Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters and multiplying by 100.

Questions & Answers

Q: What is Net Promoter Score (NPS)?

NPS is a metric that measures stakeholder responses to a product, service, or project. It categorizes stakeholders into promoters, passives, and detractors based on their ratings of satisfaction.

Q: How can project managers adapt NPS to measure stakeholder satisfaction?

Project managers can borrow the idea of NPS and adapt it to their projects. They can measure individual stakeholder satisfaction by asking stakeholders to rate their own satisfaction on a scale of 0 to 10.

Q: What are the different categories in NPS?

NPS categorizes stakeholders into promoters (scores of 9-10), passives (scores of 7-8), and detractors (scores of 0-6). Promoters are enthusiastic supporters, passives are content but not enthusiastic, and detractors are unhappy with the project.

Q: How is the Net Promoter Score calculated?

The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters and multiplying by 100. The score can range from -100 to +100, representing the overall stakeholder sentiment.

Summary & Key Takeaways

• Net Promoter Score (NPS) is a metric widely used in market research to measure customer perceptions, but it can also be adapted to measure stakeholder satisfaction in project management.

• The NPS was developed in 2003 by Fred Reichelt and is now owned by Bain and Company.

• The Project Management Institute (PMI) included a reference to NPS in the seventh edition of its Project Management Body of Knowledge (PMBOK), suggesting it as a tool to measure stakeholder satisfaction.