NPS
Net Promoter Score
Communication
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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