Net Promoter Score
NPS is the acronym for Net Promoter Score.
What is Net Promoter Score?
a metric used by businesses to measure customer loyalty and satisfaction. The NPS score is based on a single question that asks customers to rate how likely they are to recommend a company, product or service to a friend or colleague on a scale of 0 to 10.
Based on their responses, customers are then categorized into three groups:
- Promoters (9-10)
- Passives (7-8)
- Detractors (0-6)
The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. The score ranges from -100 (if all customers are detractors) to +100 (if all customers are promoters).
NPS is a widely used metric in customer experience and customer loyalty programs, and is used by businesses to measure the effectiveness of their customer service, products and services, and overall customer satisfaction. A high NPS score is considered an indicator of customer loyalty and satisfaction, while a low score suggests areas for improvement.
NPS can also be used to track changes in customer sentiment over time, and to identify trends and patterns in customer behavior. By using NPS to measure and improve customer satisfaction and loyalty, businesses can increase customer retention, reduce churn, and drive business growth.
- Abbreviation: NPS
- Source: What is the Net Promotor Score System?