Net promoter score or NPS — Terms you should know for your PMP Exam
The PMP certification is one of the most sought-after certification when it comes to project management field. The PMP exam is also considered as one of the most difficult exams to pass in the first attempt so if you are not well prepared and don't have the real world experience of managing the project, passing the PMP exam can be daunting challenge.
In order to pass the PMP exam you need both theoretical knowledge as well as practical hands on experience of working and managing the projects.
The PMP exam is well-known for asking or testing the understanding of the aspiring PMP candidates with very lesser known and peculiar topics which can be difficult to answer during the exam even for an experienced project manager.
The reason for that, in most cases could be that the the project manager might not have used that technique or that concept in the real world project.
I was going through the 7th edition of the project management book of knowledge or PMBoK Guide and I came across one new term called net promoter score which, I must confess, despite my years of experience in project management field I have not heard it or used it before.
When I give my PMP exam back in 2019, there was no 7th edition of the PMBoK Guide and most of the questions and area of focus and study material for the PMP exam was 6th edition of PMBoK Guide and of course PMI exam content outline was the another resource for me to do the preparation. So, I never came across NPS anytime during my preparation nor I used it in my job as a project manager.
However PMI has since changed the PMP Exam format. The new PMP Exam now consists 3 domains : People, Process and business environment.
And PMP exam now asks questions from these 3 domains based on below percentage(%)
•Domain l: People — (42%)
•Domain ll: Process — (50%)
•Domain lll: Business environment — (8%)
Also, the PMP exam is now 50% Agile and 50% Predictive/Hybrid.
And of course, the PMP exam now has at least 4 official PMI’s very own reference materials,
- PMBoK Guide, 7th Edition
- PMI’s Agile practice guide
- PMI’s PMP Exam content outline and
- PMBoK Guide, 6th Edition.
Hence, If you are preparing for the PMP exam not only you have to study the usual waterfall/traditional project management topics such as scope management, schedule management, cost management and others but now you also have to study about multiple topics from Agile Project Management such as knowledge of scrum, extreme programming, sprint planning, retrospective and many more.
However the focus of this article is about 1 peculiar term which as I said before that I came across in the 7th edition of project management book of knowledge which is net promoter score or NPS.
Below are the details that you need to know about for your PMP exam.
In simple terms, Net Promoter Score (NPS) is a metric that is used to measure customer satisfaction and loyalty.
But how would you measure the NPS, as a project manager?
The answer is by doing a stakeholder survey.
NPS is typically measured through a survey, where customers are asked to rate how likely they are to recommend the project or the product to a friend or colleague, on a scale of 0 to 10.
Based on the responses, customers are categorized into three groups: Promoters (score 9–10), Passives (score 7–8), and Detractors (score 0–6).
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, and ignoring the Passives. The resulting score ranges from -100 (all customers are Detractors) to 100 (all customers are Promoters).
But how should you as a project manager interpret these scores?
Well, you can use NPS score to measure the success of a project and to identify areas for improvement.
A high NPS indicates that the project is meeting or exceeding customer expectations, while a low NPS may indicate that there are issues that need to be addressed.
Hope this article gives you the basic understanding of what the NPS is and how as a project manager you can use it to know the satisfaction level of your stakeholders. And now that you know about it, you should be able to answer the situational question around it, in case if you face it in your PMP Exam. All the best!!
If you are preparing for PMI PMP or PMI ACP exam, I have created Udemy practice tests which aims to cover the peculiar and lesser-known topics like NPS and many others.
The links to them are below,
PMI PMP Udemy Practice tests — Link
PMI ACP Udemy Practice tests — Link
