Net Promoter Score
A metric measuring customer loyalty and satisfaction based on likelihood to recommend your company to others.
Definition
Net Promoter Score (NPS) gauges customer loyalty through one question: "How likely are you to recommend us to a friend or colleague?" on a 0-10 scale. Respondents become Promoters (9-10), Passives (7-8), or Detractors (0-6).
NPS is calculated by subtracting the percentage of Detractors from Promoters, yielding a score from -100 to +100. Scores above 0 are positive, above 50 are excellent, and above 70 are world-class.
Why It Matters
NPS predicts growth better than satisfaction surveys. Promoters drive referrals, repeat purchases, and brand advocacy. Detractors churn, complain publicly, and discourage others from buying.
The simplicity of NPS enables benchmarking and trending. Regular measurement reveals whether customer relationships are improving or deteriorating, allowing early intervention.
Examples in Practice
Apple maintains NPS above 70 in retail, correlating with their exceptional customer loyalty and word-of-mouth driven sales.
A B2B company discovers their NPS dropped from 45 to 25 after a product change. Deep-dive interviews with Detractors reveal the issue, allowing a fix before churn spikes.