Net Promoter Score (NPS)

A metric used in customer experience programs that measures the loyalty of customers to a company.

What is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is a metric used to measure customer satisfaction and loyalty towards a brand or company. Customers are asked a single question: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?" Based on their 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. This results in a score between -100 and 100, indicating the overall sentiment and loyalty of customers. A high NPS suggests that a company has more happy customers who are likely to recommend the brand, while a low NPS indicates areas for improvement and potential churn risks. NPS provides actionable insights for businesses to understand customer perceptions, identify strengths and weaknesses, and prioritize initiatives to enhance customer experience and drive growth. By tracking NPS over time and benchmarking against industry standards, companies can measure the effectiveness of their customer-centric strategies and foster long-term relationships with their customer base.