What is the Net Promoter Score (NPS)?
The Net Promoter Score (NPS) is a widely used metric that measures customer loyalty and satisfaction based on their likelihood of recommending a product or service to others. NPS is calculated by asking customers a single question: “How likely are you to recommend our product/service to a friend or colleague?” Respondents provide a score on a scale from 0 to 10, and the scores are categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6).
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. A high NPS indicates strong customer loyalty and satisfaction, while a low NPS suggests that improvements are needed. NPS provides valuable insights into customer perceptions, helping businesses identify areas for enhancement, improve customer experience, and drive growth through positive word-of-mouth.