NPS

NPS stands for “Net Promoter Score.” It is a widely used customer loyalty metric in marketing and customer experience management. It measures the likelihood of customers to recommend a company, product, or service to others.

The NPS is based on a simple question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Based on the responses, customers are classified into three groups:

1. Promoters (score 9-10): These are highly satisfied customers who are likely to recommend the brand to others. They are considered loyal advocates.

2. Passives (score 7-8): These customers are moderately satisfied but not as enthusiastic as promoters. They are generally satisfied but may not actively recommend the brand.

3. Detractors (score 0-6): These are dissatisfied customers who may not only refrain from recommending the brand but could also share negative experiences. They represent a potential risk to the brand’s reputation.

The Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score ranges from -100 to +100.

By leveraging NPS data, businesses can make informed decisions to strengthen customer loyalty, improve brand advocacy, and drive long-term growth.