What is net promoter score (NPS)?

Net Promoter Score (NPS) is a tool you can use to measure customer loyalty. It’s based on one simple question: “How likely are you to recommend our product or service to a friend?”

Customers answer on a scale from 0 to 10. Those who give 9-10 are “Promoters.” They’re your biggest fans. People who rate 7-8 are “Passives.” They’re satisfied but not excited. Anyone scoring 0-6 is a “Detractor.” They might bad-mouth your brand.

To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters. The score ranges from -100 to +100. A higher score means more loyal customers.

NPS helps you:

  • Track customer satisfaction
  • Predict business growth
  • Find areas to improve

Many companies use NPS to boost customer loyalty and drive social media buzz.

How is NPS calculated? 

NPS uses a simple 0-10 scale survey question. You ask customers how likely they are to recommend your brand to others. Based on their responses, you group them into:

  • Promoters (9-10)
  • Passives (7-8)
  • Detractors (0-6)

To calculate your NPS, subtract the percentage of detractors from the percentage of promoters. The formula looks like this:

NPS = % Promoters – % Detractors

For example, if 50% are promoters and 20% are detractors, your NPS is 30. Scores can range from -100 to +100. Higher scores mean more loyal customers.

Many survey tools can do this math for you automatically. They’ll tally responses and give you your final NPS score.

Why is NPS important?

NPS is a key tool for measuring customer loyalty. It helps you understand how likely your customers are to recommend your brand to others. This can predict business growth and success.

NPS gives you valuable insights into your customers’ experiences. By asking one simple question, you can gauge overall satisfaction. The score helps identify areas where you’re excelling and where you need to improve.

The feedback from NPS surveys can guide your customer experience strategies. It highlights pain points in the customer journey that you might have missed. This allows you to make targeted improvements to your products or services.

NPS also helps you spot your biggest fans. These promoters can become brand ambassadors, spreading positive word-of-mouth. On the flip side, it identifies detractors who might kick off if their issues aren’t addressed.

By tracking NPS over time, you can measure the impact of your customer-focused initiatives. It’s a simple yet powerful metric for driving customer loyalty and business growth.

What is a good NPS score? 

A NPS is any number above zero. That means more customers are recommending your brand than criticizing it. But many businesses aim higher.

An NPS of 50 or above is excellent. It shows strong customer loyalty and advocacy for your brand on social media and beyond.

Here’s a quick guide:

  • 0-30: OK, but room for improvement
  • 30-50: Good, you’re on the right track
  • 50-70: Great, customers love you
  • 70+: Exceptional, you’re a customer favorite

Remember, NPS can vary by industry. Tech companies often score higher than airlines or cable providers. It’s best to compare your score to others in your field.

To boost your NPS, focus on creating positive experiences that customers will want to share online.