Net Promoter Score (NPS)

What is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is a widely-used customer loyalty metric that measures how likely customers are to recommend your product or service to others. It's based on a single question: "On a scale of 0-10, how likely are you to recommend [Company/Product] to a friend or colleague?"

How NPS Categorizes Respondents

• Promoters (9-10): Loyal enthusiasts who will keep buying and refer others
• Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competition
• Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth

How to Calculate NPS

NPS Formula:

NPS = % Promoters - % Detractors

Example:

100 responses: 60 Promoters, 25 Passives, 15 Detractors

NPS = 60% - 15% = +45

NPS Benchmarks

• Excellent: 50+
• Good: 30-50
• Needs improvement: 0-30
• Concerning: Below 0

NPS Best Practices

• Follow up with detractors to understand and address concerns
• Ask a follow-up question: "What's the primary reason for your score?"
• Track NPS over time, not just as a snapshot
• Segment NPS by customer cohort, product, or CSM