What is Net Promoter Score?

Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a company’s products or services to others. It is calculated by asking customers to rate their level of satisfaction on a scale of 0-10 and then categorizing them as Promoters (9-10), Passives (7-8), or Detractors (0-6).

The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Therefore, a positive score indicates more Promoters than Detractors and a negative score indicates more Detractors than Promoters.

NPS can be used to track customer satisfaction over time and compare it against other companies in the same industry. It is also a useful tool for identifying areas of improvement within a company.

How is Net Promoter Score calculated?

As mentioned above, NPS is calculated by asking customers to rate their level of satisfaction on a scale of 0-10 and then categorizing them as Promoters (9-10), Passives (7-8), or Detractors (0-6).

The score is then calculated by subtracting the percentage of Detractors from the percentage of Promoters. Therefore, a positive score indicates more Promoters than Detractors and a negative score indicates more Detractors than Promoters.

What are the benefits of using Net Promoter Score?

There are many benefits of using NPS as a customer loyalty metric, including the following:

• It is a simple and easy-to-understand metric
• It is highly correlated with growth
• It can be used to track customer satisfaction over time
• It can be used to compare satisfaction levels against other companies in the same industry
• It can be used to identify areas of improvement within a company

How can I improve my Net Promoter Score?

There are a number of things you can do to improve your NPS, including the following:

• Identify your company’s biggest detractors and work to improve their experience
• Encourage customers to provide feedback and take action on that feedback
• Make it easy for customers to give feedback, such as through an online survey
• Regularly communicate NPS results to employees and provide training on how to improve NPS