What Is a Net Promoter Score (NPS)?

What Is NPS?

A Net Promoter Score (NPS) is one of several scoring methods companies use to measure the customer experience and gauge customer satisfaction. Specifically, NPS is a value or metric used to gauge how happy and loyal customers are to a brand or organization.

Customers and clients with a higher NPS are more likely to tell (and even recruit) others to use those products. Essentially, the goal of tracking NPS is to get more customers promoting products, services, and brands to their friends.

Promotion can be achieved both directly and indirectly. For instance, if an Apple user pulls out their Macbook in a coffee shop, that user is indirectly endorsing the popular tech brand.

An example of direct influence would be if a friend asks an Apple user for laptop recommendations and the user willingly attempts to convince their friend to get an Apple device.

Thanks to CallMiner

How Does a Net Promoter Score (NPS) Work?

A Net Promotor Score is the measure of how likely your customers are to promote your business. The process for measuring this is extraordinarily simple.

Through a basic survey, usually delivered right after a customer completes a transaction, you ask them something along the lines of “On a scale of 0 to 10, how likely are you to recommend our company?” The scale for evaluating answers breaks down as follows:

• 0–6 — Detractor
• 7–8 — Passive
• 9–10 — Promoter

The actual NPS for your business is measured as the percentage of promoters minus the percentage of detractors. Consider a business with the following scores:

• 25 scores between 0 and 6 (25% of total)
• 15 scores between 7 and 8 (15% of total)
• 60 scores between 9 and 10 (60% of total)

That business would have an NPS score of 35 (60% minus 25%). As you can see, it’s also possible to have a negative score if the proportion of detractors is greater than the proportion of promoters. Thus, NPS scores can range from -100 to 100.

Thanks to Cyara

Author: Robyn Coppell