Net Promoter Score (NPS)
Net Promoter Score (NPS) is seen by many as the “gold standard” in customer experience metrics. It was first developed by Bain & Company in 2003 and is today used by millions of organizations worldwide to measure how they’re perceived by their customers.
NPS generally asks customers “How likely would you be to recommend [our brand] to others?” and registers their response on a simple scale of 0 – 10. Customers are then segmented into three ‘categories’ based on the response they’ve provided: detractors, passives, and promoters:
· Promoters: Those who responded with 9 – 10, i.e., they’re happy.
· Passives: Those who responded with 7 – 8, i.e., they’re satisfied.
· Detractors: Those who responded with 0 – 6, i.e., they’re unhappy.
An overall NPS score can range from -100 to +100 and is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
How to Calculate Net Promoter Score (NPS):
Net Promoter Score (NPS) FAQs
What is Net Promoter Score?
Net Promoter Score is the “gold standard” metric used to measure customer loyalty and satisfaction by asking customers how likely they are to recommend a company’s product or service to others, on a scale from 0 to 10.
How is NPS calculated?
NPS is calculated by subtracting the percentage of detractors (those who score 0-6) from the percentage of promoters (those who score 9-10). The score ranges from -100 to 100.
Why is NPS an important metric for brands?
NPS is important because it provides insights into customer loyalty, predicts future growth, identifies areas for improvement, and helps businesses understand their customers’ perceptions and likelihood of advocating for their brand.