Communication

NPS

Net Promoter Score

A metric measuring customer loyalty based on likelihood to recommend. Calculated by subtracting detractors (0-6) from promoters (9-10).

What is NPS?

Net Promoter Score (NPS) measures customer loyalty by asking how likely they are to recommend your product or service to others. It's a leading indicator of growth and retention. How NPS works: - Ask: "How likely are you to recommend us?" (0-10) - Promoters: 9-10 (loyal enthusiasts) - Passives: 7-8 (satisfied but unenthusiastic) - Detractors: 0-6 (unhappy customers) - NPS = % Promoters - % Detractors NPS benchmarks vary by industry: - Below 0: Needs work - 0-30: Good - 30-70: Great - Above 70: World-class

Formula

NPS = % Promoters - % Detractors

Example

If 60% are promoters and 20% are detractors, NPS = 40.

Why NPS Matters

NPS correlates strongly with business growth and customer retention.

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