Net value score

The Net Value Score (NVS) is a performance metric that measures the perceived value offered by companies supplying a market. It can be used as an alternative or complement to the Net Promoter Score, and can be used in customer satisfaction, loyalty, pricing, and branding research studies.
Overview
The Net Value Score is a brand measurement tool created and developed by global market research consultancy B2B International. The metric is based on a set of questions and an algorithm developed during a global branding study for a Fortune 500 company, and has since been used in a number of studies carried out by other Fortune 500 corporations.
Calculating the NVS
The NVS is obtained by asking a company’s customers a single question:
: How would you rate COMPANY X on the total value the company offers, compared to the total value offered by other suppliers of similar products/services?
There are five possible responses to the question:
* Significantly better
* Somewhat better
* Neither better nor worse
* Somewhat worse
* Significantly worse
Using the data from this question, the following calculation is employed to arrive at the Net Value Score:
: NVS = ((% of significantly better * 2) + (% of somewhat better)) - ((% of significantly worse * 2) + (% of somewhat worse))
The highest possible score is 200, whilst the lowest possible score is -200. The NVS should be compared to the scores of competitors in order to understand the relative perceived value of each player in the market. The Net Value Score is a composite measure of brand value. Scores above 60 are considered to be excellent, whilst good scores are between 40 and 60. Scores below 40 indicate a relative indifference to the brand or/and issues with the brand, suggesting urgent attention is required.
Applications
The Net Value Score can be used for benchmarking (enabling users to understand where they are relatively stronger and weaker in perceived value), and for pinpointing the causes behind a high or low perceived value score. It can also provide the perceived value of a company’s different business units, indicating where the company’s Customer value proposition (CVP) is seen as strongest and weakest. The NVS ultimately assists users in determining how they can maintain or increase the level of value they are perceived to offer, with a view to driving growth and increasing market share.
Industry Examples
PPG Industries has used the Net Value Score to measure the perceived value of its brand, stating:
The NVS is a new metric that provides an ideal way to measure customer-experienced value. It is an excellent, adjacent metric to other popular customer advocacy scores that customers should embrace.

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