Net Promoter Score (NPS)

What is the Net Promoter Score (NPS)?

The Net Promoter Score (NPS) is a measurement tool used to gauge customer satisfaction and loyalty. It was developed by Fred Reichheld and Bain & Company and is a popular method within businesses.

NPS is based on a simple question: "How likely is it that you would recommend our company/product/service to a friend or colleague?" Respondents are asked to rate on a scale of 0 to 10, where 0 means "very unlikely" and 10 means "very likely."

Based on their responses, 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 and recommend your product or service to others.
2. Passives (score 7-8): These are satisfied customers, but not extremely enthusiastic. They are unlikely to actively promote or criticize your company.
3. Detractors (score 0-6): These are dissatisfied customers who may speak negatively about your company and could advise others to avoid your company/product.

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, signaling a healthy customer relationship.

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