Glossary Term
Net Promoter Score (NPS)
Definition
Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction based on their likelihood to recommend a company's product or service to others. NPS is typically gathered through a single-question survey where respondents are asked to rate, on a scale from 0 to 10, how likely they are to recommend the company or product to friends or colleagues. Based on their responses, customers are classified as promoters, passives, or detractors.
Relevance to the MedTech Industry
NPS provides valuable insights into customer satisfaction, loyalty, and overall experience with a product or service. In the MedTech industry, NPS is commonly used to assess the reception of medical devices, customer service, or training programs. It helps identify areas of improvement, monitor brand health, and guide strategic decisions related to product development and marketing.
Additional Information & Related Terms
Related Terms
Customer Satisfaction (CSAT): A metric that measures a customer’s satisfaction with a product or service, typically collected through surveys.
Customer Loyalty: A measure of a customer’s commitment to a brand or product, which can be influenced by NPS scores.
Net Promoter System (NPS System): A business framework that includes not only NPS measurement but also processes for addressing feedback and driving improvements based on the scores.
Churn Rate: The percentage of customers who stop using a product or service over a given period. NPS can be correlated with churn, as detractors are more likely to churn.
Voice of the Customer (VOC): A method of capturing customer feedback that complements NPS by providing qualitative insights into customer experiences.