What is a Net Promoter Score®?
Net Promoter Score® (NPS)* is a customer satisfaction benchmark that measures how likely your customers are to recommend you to a friend or colleague. To calculate your NPS, you must first survey your customers. NPS is the answer to the question: How likely are you to recommend us to a friend or colleague? You score the answers on a zero-to-ten scale which is divided into three groups:
- Promoters: Customers who scored 9 or 10. These are loyal enthusiasts who are likely to keep renewing and to refer your product/services to others.
- Passives: Customers who scored 7 or 8. These are satisfied but unenthusiastic customers who can be particularly vulnerable to competitive offerings.
- Detractors: Customers who scored 0 to 6. These are unhappy customers who are at risk for churning and have the potential to do damage to your brand through negative word-of-mouth.
How do you calculate Net Promoter Scores
NPS = % of Promoters – % of Detractors
Your NPS will fall inside a range of -100 to +100. A positive score is generally a win, as this means you have more promoters than detractors. But overall, a good score depends on industry, company size, and business maturity. For example, consumer products usually score higher on NPS than B2B products. The most important thing is to benchmark against yourself to make sure you improve.
For tips on when to survey customers, follow-up survey actions, and NPS best practices, check out our NPS Cheat Sheet.
*Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.« Back to Glossary Index