Net promoter score (NPS)
Net promoter score (NPS) is a metric used to measure customer loyalty and satisfaction. It is based on the simple question: „On a scale of 0-10, how likely are you to recommend our product/service to a friend or colleague?“ Customers who respond with a 9 or 10 are considered promoters, while those who respond with a 0-6 are considered detractors. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
For example, if 70% of customers are promoters and 10% are detractors, the NPS would be 60 (70% – 10% = 60%). A high NPS indicates that a company has a strong base of loyal customers who are likely to recommend their products or services to others.
Companies can use NPS to identify areas for improvement and track customer satisfaction over time. By regularly surveying customers and monitoring changes in their NPS, companies can make data-driven decisions to enhance customer experience and drive business growth.
Overall, Net promoter score is a valuable tool for businesses to measure and improve customer loyalty, ultimately leading to increased customer retention and advocacy.
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