NPS (Net Promoter Score)

What is NPS?

Net Promoter Score measures customer loyalty by asking one question: "How likely are you to recommend us to a friend or colleague?" Respondents rate 0-10 and are grouped into Promoters (9-10), Passives (7-8), and Detractors (0-6).

NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Scores range from -100 (everyone's a detractor) to +100 (everyone's a promoter).

Why NPS Matters

NPS correlates with growth. Promoters refer new customers, renew at higher rates, and expand their accounts. Detractors churn, demand support resources, and damage your reputation.

The score itself matters less than the trend and the feedback. Follow up with detractors to understand their pain. Double down on what promoters love.

NPS Benchmarks

Below 0: Critical problems. More detractors than promoters. 0-30: Room for improvement. Average for most industries. 30-70: Good. Strong customer satisfaction. Above 70: Excellent. World-class customer loyalty.

Survey results from 200 customers:

• Promoters (9-10): 100 customers (50%)
• Passives (7-8): 60 customers (30%)
• Detractors (0-6): 40 customers (20%)

NPS = 50% - 20% = +30

Solid score. You have more advocates than critics. Focus on converting passives to promoters.