What is NPS?
Net Promoter Score (NPS) is a simple yet powerful metric that measures customer loyalty and satisfaction. It helps businesses understand how customers feel about their brand, products, or services—and whether they’re likely to recommend them to others.
At its core, NPS is based on a single question:
"On a scale from 0 to 10, how likely are you to recommend our product to a friend or colleague?"
Customers are then categorized into three groups:
| Category | Score Range | Description |
|---|---|---|
| Promoters | 9-10 | Loyal enthusiasts who are likely to recommend your business and contribute to growth. |
| Passives | 7-8 | Satisfied but unenthusiastic customers who could switch to a competitor. |
| Detractors | 0-6 | Unhappy customers who may discourage others from engaging with your brand. |
The NPS is calculated using the following formula:
NPS score = % of Promoters - % of Detractors
This gives you a score that can range from -100 (all detractors) to 100 (all promoters).
Examples
Example 1: A High NPS
| Promoters | 70% |
| Passives | 20% |
| Detractors | 10% |
Using the formula:
NPS score = 70% - 10% = 60%
An NPS of 60 is excellent. A high percentage of promoters indicates strong customer loyalty and satisfaction. This suggests your customers are likely to recommend your business and drive growth.
Example 2: A Neutral NPS
| Promoters | 40% |
| Passives | 30% |
| Detractors | 30% |
Using the formula:
NPS score = 40% - 30% = 10%
An NPS of 10 is average. While you have a fair number of promoters, the detractors indicate areas for improvement. Follow up with detractors to understand their dissatisfaction.
Example 3: A Low NPS
| Promoters | 20% |
| Passives | 30% |
| Detractors | 50% |
Using the formula:
NPS score = 20% - 50% = -30%
An NPS of -30 is a warning sign. A high percentage of detractors shows significant customer dissatisfaction. Immediate action is needed to address the issues driving negative feedback.
Why does NPS need to track?
NPS isn’t just a number—it’s a gateway to deeper customer insights.
Here’s what makes it valuable:
- Simplicity and Clarity: A single-question survey is easy for customers to complete and for businesses to analyze.
- Customer-Centric Decisions: By following up with customers (especially detractors), you can uncover pain points and areas for improvement.
How to run surveys and collect NPS feedback
NPS in Action
- Benchmarking Performance: Compare your NPS to industry standards to see where you stand.
- Tracking Trends Over Time: Regular NPS surveys help you monitor improvements or detect declines in customer satisfaction.
- Closing the Loop:
Hacks
- Use follow-up questions like “Why did you give this score?” to gather actionable feedback and make meaningful changes.
- Ask users to leave a review on external resources if they respond positively. It helps to increase your rating.
While NPS is a great starting point, it works best when combined with other feedback tools and data. For example, digging into qualitative feedback can reveal hidden opportunities to enhance customer experiences.
Start measuring your NPS today to turn customer loyalty into a competitive advantage. It’s not just a score — it’s a conversation starter for growth.
