Net Promoter Score (NPS)

NPS categorizes respondents into three groups based on their scores. Those who give a score of 9 or 10 are considered Promoters. These customers are highly satisfied and likely to recommend the company. Respondents who give a score of 7 or 8 are considered Passives. They are satisfied but not enthusiastic enough to actively promote the company. Lastly, those who give a score of 0 to 6 are considered Detractors. These customers are unhappy and may even discourage others from using the company’s products or services.

To calculate the NPS, subtract the percentage of Detractors from the percentage of Promoters. The result is a score that can range from -100 to 100. A positive score indicates that a company has more Promoters than Detractors, which is generally seen as a sign of good customer satisfaction and loyalty. A score above 0 is considered acceptable, while a score above 50 is considered excellent.

NPS is valuable because it provides a simple yet powerful way to measure customer sentiment. It helps companies identify areas for improvement and track changes in customer satisfaction over time. By regularly surveying customers and calculating their NPS, companies can gain insights into their performance and make data-driven decisions to enhance their products and services.

In addition to the numerical score, many companies follow up the NPS question with an open-ended question asking respondents to explain their score. This qualitative feedback can provide deeper insights into what customers appreciate or dislike about the company. It can also help identify specific issues that need to be addressed to improve customer satisfaction.

NPS is widely used across various industries, from technology and retail to healthcare and finance. It serves as a benchmark for comparing customer loyalty and satisfaction among competitors. Companies often share their NPS publicly as a way to demonstrate their commitment to customer satisfaction and to attract new customers.

In summary, Net Promoter Score (NPS) is an effective tool for measuring customer loyalty and satisfaction. By categorizing customers into Promoters, Passives, and Detractors, and calculating a score based on their responses, companies can gain valuable insights into their performance. Regularly tracking NPS and analyzing the feedback can help companies improve their products and services, ultimately leading to higher customer satisfaction and loyalty.