Net Advocacy Rating®

The short answer

NAR® measures customer advocacy using likelihood to recommend and likelihood to do more business. It subtracts the percentages of Critical and At Risk customers from the percentage of Advocates.

Our Advocacy Model and proprietary Net Advocacy Rating (NAR^®) provide a direct correlation between customer feedback ratings and a better bottom line. Advocacy isn’t just a “feel-good”concept. We have validated the Advocacy Model using actual customer behavior with several clients, including longitudinal analyses to track customers over time. As customers move up the Advocacy scale, they buy more of your products, interact with you more, use stickier products, and generate more revenue for your company. On the other hand, as customers move down the Advocacy scale, they are more likely to defect and generate less revenue for your company overall.

How does it work?

The Advocacy Model is based on two key questions that determine:

Customer likelihood to recommend your company to friends and colleagues
Customer likelihood to do additional business with you in the future

The customer base is then segmented into four categories depending on their answers:

Advocates

Extremely loyal and willing to tell others about the organization

Loyal

Very satisfied and will continue to use the organization but won’t necessarily tell others about it

At Risk

Dissatisfied and considering looking for a new company

Critical

Most likely to leave and least likely to recommend

The APECS^® customer experience measurement program tracks your efforts to increase advocacy through your Net Advocacy Rating (NAR^®), calculated by simply subtracting the percentage Critical and At Risk from the percentage of Advocates. The NAR^® is an enterprise-wide metric that identifies how successful you are in growing and maintaining Advocates. NAR^® is a fluid measurement, as it is dependent upon the customer experience over time, which is why it is important to measure and track on an ongoing basis and report in real time.

Questions, answered.

How is Net Advocacy Rating calculated?

NAR® equals the percentage of Advocates minus the combined percentages of Critical and At Risk customers. Classification uses likelihood to recommend and likelihood to do additional business.

Is NAR® the same as NPS?

No. MSR’s Net Advocacy Rating uses two questions and four customer categories. Net Promoter Score uses a recommendation question and a different classification. Scores should not be treated as interchangeable.