What is Net Promoter Score?

Net promoter score (NPS) is a metric that measures customer satisfaction. Businesses collect NPS data by surveying their present customers. It gauges how likely consumers are to refer the organization, its goods, or services to other people and ranges between -100 and 100.

More About Net Promoter Score

In 2003, Fred Reichheld of Bain & Company established the Net Promoter Score statistic in his best-selling book, “The Ultimate Question: Driving Good Profits and True Growth.” He developed this as a novel approach to measure the number of satisfied customers a business attracts by the nature of the experiences it provides.

Net promoter score determines whether or not an enterprise has a chance to receive repeat customers or attract new customers. It provides a quantitative and qualitative image of its customers’ sentiments by demonstrating customer sentiment for your company as a whole!

When a business wants to learn about its brand’s products and services, it usually conducts surveys with a score range of 0-10. Customers are divided into three groups according to their survey responses:

  • Promoters: These are consumers who gave an NPS rating of 9 or 10. They are quite loyal customers who share good word of mouth or provide positive remarks about the brand.
  • Passives: These are the customers who gave a lower NPS rating of 7 or 8. They have an average viewpoint toward the business and can move on when an ideal chance arises.
  • Detractors: These are dissatisfied consumers who provided an NPS rating of 0 to 6. They are not loyal to the business and will most likely pass on negative word of mouth or comments about the business.

Calculating the NPS of your business is an easy formula that includes subtracting the percentage of detractors from the percentage of promoters. The score will range from -100 to 100.

Net Promoter Score = % of promoters – % of detractors

Frequently Asked Questions

What are the different types of net promoter scores?

Expert users of the Net Promoter System collect consumer input in three ways: experience NPS, relationship NPS, and competitive benchmark NPS.

What are the three ways to use a Net Promoter Score?

Here are three ways you can use a Net Promoter Score.

  • Integrate it into the user profile so that your customer support team is prepared to respond to inquiries and understand your customers' specific needs.
  • To understand the customer parts, create reports that are filtered based on NPS ratings.
  • Discover your inert and convert them into boosters.

What is the impact of a good NPS score?

A good NPS score implies greater customer loyalty, which can result in increased revenue, lower turnover, and greater customer lifetime value (CLV). Businesses can boost their return on investment by using all of these elements.

Manage social media effortlessly.

  • Trial Begins Immediately
  • No CC Required
  • Change Plans Anytime
  • Cancel Anytime

Start Your 14-Day Free Trial