H&M's Net Promoter Score is based on responses to a single question, typically on a scale from 0 to 10:
"How likely are you to recommend H&M to a friend or colleague?
H&M's promoters are those who respond with a score of 9 to 10, and they are likely to create most value, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers. Detractors, responding with a score of 0 to 6 are believed to be less likely to exhibit the value-creating behaviors.
Responses of 7 and 8 are labeled passives, and their behavior falls in the middle of promoters and detractors.
The Net Promoter Score of H&M is a number from -100 to 100 calculated by subtracting the percentage of detractors from the percentage of customers who are Promoters.
NPS is a customer loyalty metric that measures customers’ willingness to not only return for another purchase or service but also make a recommendation to their family, friends or colleagues.
It is a powerful and effective technique, which can greatly increase a company's revenue if used properly.
The main advantages of NPS are close correlation with a company's growth and easy collection, interpretation and communication of the data.
Yes, it is.
Net Promoter Score is a number from -100 from 100.
Scores higher than 0 are typically considered to be good and scores above 50 are considered to be excellent.
The industry average for Consumer Brands / Retail/E-tail is 50.
The final Net Promoter Score of a company strongly depends on a context in which the satisfaction is measured.
Consider an example: If H&M sends out NPS surveys immediately after purchase, they are tracking their customers' initial excitement and the checkout experience.
On the other hand, if they survey their customers a few weeks after the purchase they are also tracking how satisfied their customers are with their products and services over time.
Therefore, comparing the NPS score of H&M with your own without any further context is not that useful.
What is extremely useful though, is using the NPS methodology to track the satisfaction of your customers over time. That's where Customer.guru comes in.
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