What is Net Promoter Score (NPS)?

What is the Net Promoter Score (NPS)?

The Net Promoter Score (NPS) is a metric used to measure customer satisfaction and loyalty.

Developed by Fred Reichheld and Bain & Company, NPS is a popular method within companies. It is based on a straightforward question: "How likely are you to recommend our company/product/service to a friend or colleague?" Respondents answer on a scale from 0 to 10, where 0 means "very unlikely" and 10 means "very likely."

Based on their answers, customers are categorized into three groups:

1. Promoters (score 9-10): These are highly satisfied customers who are likely to speak positively about your company/product and recommend it to others.
2. Passives (score 7-8): These customers are satisfied but not extremely enthusiastic. They are neither likely to speak positively nor negatively about your company.
3. Detractors (score 0-6): These are dissatisfied customers who may speak negatively about your company and advise others to avoid it.

The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The resulting number can range from -100 (only Detractors) to 100 (only Promoters). A positive NPS indicates that you have more Promoters than Detractors, which suggests a healthy customer relationship.

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