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Net Promoter Score (NPS)

Net Promoter or Net Promoter Score is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research and is claimed to be correlated with revenue growth.

How is NPS calculated?

The Net Promoter Score is calculated as the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percentage but as an absolute number lying between -100 and +100. For instance, if you have 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5.

What is a good NPS score?

Generally speaking, a Net Promoter Score that is below 0 would be an indication that your business has a lot of issues to address. See the full article for more details.

Is NPS a good metric?

While NPS might be a great metric for focusing people’s attention on customer loyalty, to really change your culture and move the needle on customer loyalty, you need a much more strategic and systemic approach to measurement and actions. In other words, stop using NPS as a stand-alone metric.

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Help Topics

Net Promoter Score (NPS)

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