What is NPS?
What is NPS*?
NPS is held up as the gold standard of customer experience metric, which measures the loyalty of customers to a company, based on one simple question:
“How likely is it that you would recommend *Organization/product/service* to a friend or colleague?”.
Customers/Respondents gives a rating between 0–10, which classifies the the respondents into one of 3 categories:
- Promoters: Responses with a score between 9 or 10, typically loyal customers.
- Passives: Responses with a score between 7 or 9, Satisfied customers but not satisfied enough to be considered promoters.
- Detractors: Responses with a score between 0–6, unsatisfied customers unlikely to buy again and may discourage others from buying from you.
The final Net Promoter Score (NPS) is calculated like this:
Promoters minus detractors divided on total responses.
*Net Promoter® and NPS® are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.