Understanding Net Promoter Score 2020-11-26T14:16:39-05:00

Understanding Net Promoter Score ® in 60 Seconds

A Bite-size Insight module

Customers will voice their opinions about products, services and companies to coworkers, friends, and family members.

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The Net Promoter Score®, or NPS®, is a customer loyalty metric that measures how willing a customer is to recommend a product or service.

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The Net Promoter Score® was developed by Fred Reichheld, Satmetrix Systems, Inc., and Bain & Company’s loyalty practice.

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The Net Promoter Score® is calculated on a response to a single question: “How likely is it that you would recommend product X to a friend or coworker?”

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Those who respond with a score of 9 and 10 are likely to buy more and make positive referrals to other people.

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Those who respond with a score of 7 or 8 are likely satisfied customers, but lack the enthusiasm to promote the product.

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Those who respond with a score of 0 to 6 are often unhappy and will likely spread negative word-of-mouth about the product.

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To calculate NPS® for a product, group customers according to how they scored the product experience. For example:

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Net Promoter Score® is calculated by taking the percent of Promoters and subtracting the percent of Detractors.

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The possible NPS® can range from +100 (all Promoters) to -100 (all Detractors).

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A goal of every company is to improve the loyalty of its customers.

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Engaging customers about their experience of our product or company will reveal how to make improvements so we can achieve stronger loyalty with future customers.

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