How to measure the effects of digital marketing? Part 1: Net Promoter Score (NPS)

In order to develop and deliver customer-centric products & service, one needs to understand the customer and his/her true (latent) needs. After all, overall goal is succesfull and sustainable business.

First measure is classic ROI (Return On Investment). However, one way to support decision-making is to measure marketing Key Performance Indicators (KPIs).

Following picture depicts overall KPIs:

What does NPS really mean?

NPS = Net Promoter Score:

NPS = %Promoters - %Detractors

"Would you recommend this product or service?"

Promoters are people (%) who would recommend your product when surveyed.
And Detractors are not recommending.

NPS was developed by Frederick Reichheld and his research was published first time broadly in Harvard Business Review article in December 2003.

Story will be continued...