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Net Promoter Score (NPS)
27 May, 2024 1 min read
What is Net Promoter Score (NPS)?
The Net Promoter Score (NPS) assesses customer loyalty and the probability of recommending a product or service to others.
It's based on a single question:
💡
"How likely are you to recommend our company/product/service to a friend or colleague, on a scale from 0 to 10?"
How To Calculate Net Promoter Score (NPS)?
NPS = (% Promoters - % Detractors)
- Promoters: Scores of 9-10 (Loyal customers, extremely likely to recommend)
- Passives: Scores of 7-8 (Neutral customers, somewhat likely to recommend)
- Detractors: Scores of 0-6 (Unhappy customers, unlikely to recommend)
An Example of Net Promoter Score (NPS)
Out of 100 responses, 60 are Promoters, 20 are Passives, and 20 are Detractors.
NPS = (60% - 20%) = 40
Analysis
- NPS above 70 is considered excellent, 50-70 is good, 30-50 is average, and below 30 is poor.
- NPS helps track customer loyalty over time and identify areas for improvement.
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