CX Dictionary

What is Net Promoter Score (NPS)?

A Net Promoter Score (NPS) is a tool to measure how likely customers are to recommend a service or product to others. In essence, it’s a method to measure customer loyalty and predict future revenue growth.

The Net Promoter Score is comprised of a single question “How likely are you to refer [insert company name] to a friend, family member or colleague?” From a scale of 0-10, with 0 being not at all likely and 10 being very likely, businesses can determine if their customers is a Promoter, Passive, or Detractor.

Within NPS, Promoters are customers who rate the establishment either 9-10. They will actively refer other customers to the business and are responsible for business growth. A Passive customer rates the business either 7-8 and is satisfied with the experience but won’t jump at the chance to tell people. Lastly, a Detractor is a customer who rates the establishment either 0-6. These customers will most likely not visit a business again or purchase any products in the future. In addition, they hinder growth and can tarnish a business’s reputation.

Why Is NPS Important?

Net Promoter Score surveys help businesses gain insightful feedback in real-time, with little to no cost. In addition, since it is a simple one sentence question, there is little upkeep and it’s easy for businesses to send out and analyze.  

Similarly, NPS surveys have proven to help businesses strengthen their strategies, enhance the customer experience and benchmark team member progress and satisfaction.