Pharma executives attending the following CELforPharma courses - The Strategic e-Medical Affairs Course / The Strategic Digital Pharma Marketing Course - learn about the Net Promotor Score (NPS). This article is about using it effectively.
Originally introduced by Frederick F. Reichheld in the 2003 HBR article entitled “The One Number You Need to Grow”, NPS is used in many industries as a measure for customer loyalty and an indicator for growth.
Here is a handy infographic on how to calculate the Net Promotor Score (NPS):
NPS is calculated as % Promotors - % Detractors and thus varies between -100% and +100%.
Pharma companies, too, can benefit from this robust KPI. They can and should use it wherever they deal with external stakeholders to motivate their market-facing teams to improve stakeholder loyalty and word-of-mouth. Here is an example:
Assume you organise 2 webcasts with 2 Key Opinion Leaders (KOLs): KOL A and KOL B
At the end of each webcast, you ask the following question to the viewers: “On a scale of 0 to 10, where 0 is not at all likely and 10 is extremely likely, how likely is it that you would recommend this webcast to your colleagues?”
Say you got the following replies:
In our example, the NPS of both webcasts is + 20%. At first sight, both webcasts performed equally well, but there is room to improve the performance of both. Since NPS is a summary statistic, you should dig deeper: