What is Net Promoter Score?
Net Promoter Score (often simply referred to as NPS) is a widely used and accepted measure for the loyalty and satisfaction of a brand’s customers.
NPS is regarded by many consumer facing businesses as the one key metric that drives growth and success.
It is measured on a 10-point scale, where everyone rates company in response to the following question:
‘How likely are you to recommend Company A’s product or service to a friend or a colleague?’
The responses are then pooled into 3 sections:
0-6 = Detractors - unlikely to purchase the product again, and may actually damage the brand’s reputation.
7-8 = Passives - not so dissatisfied as to bad-mouth the brand, but not satisfied enough to actually recommend it.
9-10 = Promoters - brand evangelists who repeatedly buy the product or service, and are extremely likely to recommend it to people.
This gives the ‘raw’ data from which the NPS can be calculated. To get the NPS, you must subtract the percentage of detractors from the percentage of promoters. (Passives are left out of the calculation.)
You then have an NPS: an index ranging from -100 to 100, typically expressed as a percentage.
You’ll note that with only 9 and 10s considered ‘Promoters’, it’s a high bar to enjoy strong NPS, so brands with a great NPS are understandably proud of this achievement.