Net Promoter Score (NPS)

Definition:

Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement taken by asking customers how likely they are to recommend your product or service to others on a scale of 0-10.

How is NPS score calculated?

In the Net Promoter System, customers get categorized into three groups — promoters, detractors, and passives — depending on how they answer the standard “how likely are you to recommend us” question.

Promoters (scores of 9 and 10) represent a company’s most enthusiastic and loyal customers.
Passives (scores of 7 or 8) are not actively recommending a brand but are unlikely to damage it with negative word of mouth.
Detractors (scores of 0 to 6) are unlikely to recommend a company or product to others and could actively discourage potential customers from a business.

To calculate your company’s NPS, subtract the percentage of Detractor customers from the percentage of Promoter customers.

What is a Good Net Promoter Score (NPS)?

Any score above 0 reads as good because it shows that a business has more promoters than detractors. But companies do tend to strive for an NPS of 70 or higher. Some global business giants, however, like Apple, Netflix, and Amazon, have NPS scores ranging from the high 40s to the high 60s.