The Net Promoter Score® is the world's most widely used technique to homogeneously measure the level of loyalty and happiness of its customers, developed (and protected by the trademark) by Fred Reichheld, Bain & Company and Satmetrix.
This methodology measures the "word of mouth rate" and detects a reliable indicator, anticipating the growth rate of a company/activity, and consequently its success.
The indicator is built from the evaluation given in the following question:
How much, on a scale from 0 to 10, would you recommend this event, to a friend, a colleague, or other people? (Where 0 means "not at all likely" and 10 means "extremely likely")
The analysis of the distribution of the dynamics related to the answers, leads to the construction of an indicator (called NPS).
How to calculate the NPS®
After the participants (visitors/exhibitors) have given an evaluation on the possibility of recommending the event to a friend/colleague, assigning a value ranging from 0 (not at all likely) to 10 (extremely likely), it is possible to divide them into 3 categories: Promoters, Passives and Detractors.
Calculate the NPS®
NPS is calculated by subtracting the percentage of promoters from the percentage of detractors.
The maximum value that can be obtained is NPS= +100 (which is equivalent to having 100% of the client promoters), the worst is NPS= -100 (which is equivalent to having all the detractors).
The percentage of Liabilities is not used in the calculation of NPS because their loyalty is neutral.
3 reasons why NPS® is useful
1. Helps you keep track of the evolution of the fair. Once you have calculated the NPS of the event, you can repeat the survey at each edition to see if your performance is improving from the previous edition.
2. Gives you a better perspective. Since NPS is a metric, you can easily compare your score with your competitors. A low or negative NPS could be good if in the benchmark it is in the 90th percentile compared to other fairs.
3. Create an organizational alignment. NPS creates visibility around business performance and helps everyone, from executives to operations, understand the true impact of their efforts in terms of spending, strategies, etc.
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