What is a Net Promoter Score (NPS)?

Definition

The Net Promoter Score (NPS) is a widely used metric that measures customer loyalty and satisfaction by asking one single, powerful question: « On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague? »

Based on their response, customers are grouped into three categories:¹

• Promoters (9-10): Loyal enthusiasts who will keep buying and refer others, fueling growth.²
• Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.³
• Detractors (0-6): Unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters:

$$\text{NPS} = \% \text{Promoters} – \% \text{Detractors}$$

Examples

• Survey Calculation: A company surveys 100 customers.
  • 60 respond with a 9 or 10 (60% Promoters).
  • 25 respond with a 7 or 8 (25% Passives).
  • 15 respond with a 0 to 6 (15% Detractors).
  • The NPS is $60\% – 15\% = 45$.
• B2C E-commerce: Sending a post-purchase email asking for an NPS rating.
• B2B SaaS: Surveying key account contacts quarterly to gauge account health.

Advantages/Benefits

• Simplicity: It’s a single, easy-to-understand number that can be tracked over time.
• Actionable Feedback: Identifies unhappy Detractors for immediate follow-up and happy Promoters for testimonials or referrals.
• Benchmarking: Allows you to compare your performance against industry competitors.
• Predicts Growth: A high NPS is strongly correlated with customer loyalty, retention, and long-term business growth.

Related terms

• Customer Experience (CX)
• Customer Satisfaction (CSAT)
• Customer Effort Score (CES)
• Customer Loyalty
• Churn Rate