Net Promoter Score

Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction based on their likelihood to recommend a company’s product or service to others. NPS is derived from a simple survey question: “On a scale of 0 to 10, how likely are you to recommend [company/product/service] to a friend or colleague?” Respondents are categorized into three groups based on their scores: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6). The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score that can range from -100 to +100. A high NPS indicates that a company has more promoters than detractors and is likely to have strong customer loyalty and positive word-of-mouth referrals.