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Net Promoter Score (NPS)

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What is Net Promoter Score?

Net Promoter Score (NPS) measures how likely customers say they are to recommend your company to others, typically on a scale of 0-10. It combines customer satisfaction, loyalty, and referral potential in one metric. Customers are usually classed as 'Detractors' (0-6), 'Passive' (7-8), or 'Promoters' (9-10).

How is Net Promoter Score (NPS) used?

This metric is key in assessing the health of customer relationships and gauging overall sentiment towards your offerings. It's useful to identify brand advocates and detractors, streamline customer success efforts, and forecast business growth through word-of-mouth traction.

How to calculate Net Promoter Score (NPS)

% of Promoters - % of Detractors

To calculate NPS, first, survey your customers asking how likely they are to recommend your company on a scale of 0-10. Classify the responses as Detractors (0-6), Passives (7-8), and Promoters (9-10). Calculate the percentage of Promoters and Detractors. Then, subtract the percentage of Detractors from the percentage of Promoters.

Best Practices

Regularly survey customers to track changes over time, segment feedback to pinpoint areas for improvement, and connect NPS to customer experiences to validate data. To increase NPS, gain a deep understanding of customer feedback, then focus on product quality, delivering excellent customer service, engaging with users, and personalising the customer journey.

Common Misconceptions

While NPS is a valuable indicator, it should be part of a broader process so you can understand the nuances of your customers' feedback. High scores don't guarantee growth; low scores don't signify imminent churn.

“Profit in business comes from repeat customers, customers that boast about your project or service and that bring friends with them.”

W. Edwards Deming
/
Economist

"Smart companies have realized that customer loyalty is the most powerful sales and marketing tool that they have."

Bill Price
/
Founder, Driva Solutions

FAQs

What are the main drivers of Net Promoter Score (NPS)?
  • Product quality
  • % of Promoters
  • % of Detractors
How should I break down Net Promoter Score (NPS)?
  • Industry vertical
  • Geography
  • Product
  • Usage patterns

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