Healthcare finance questions | Business & Finance homework help
The measure is called Net Promoter Score (NPS), and it is a metric used to gauge customer loyalty by measuring how likely customers are to recommend a brand, product, or service. It’s based on the idea that people who like a business enough to recommend it to others are more likely to be loyal customers. The NPS score ranges from -100 to 100, and companies use this score as an indicator of customer satisfaction.
Amazon uses the NPS score in its seller ratings system and the score is calculated based on feedback from Amazon customers who have purchased items from specific sellers. Customers are asked one simple question: “How likely would you be to recommend [the seller]?” Their responses are then categorized into three groups: promoters (9-10 out of 10), passives (7-8 out of 10), or detractors (0-6 out of 10). These categories are then used to calculate the overall NPS for each seller on Amazon’s platform.
Apple also uses the NPS, but they ask two questions instead of just one: “How satisfied were you today with your experience?” and “On a scale from 0-10, how likely would you be to recommend our products or services?” Since Apple offers both products and services, they break down their scores separately between product reviews and customer service reviews. This allows them to better evaluate different areas where they need improvement.