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What is NPS® and how does it work?
Net Promoter ScoreSM, commonly referred to as NPS, is one of the most prevalent customer experience metrics used by companies around the world. Its prime function is to measure the likelihood of your customers recommending your business, products, or services to friends or colleagues.
The Net Promoter Score methodology is based on asking customers a single question that predicts the likelihood of both repurchase and referral: “How likely is it that you would recommend XYZ to a friend or colleague?”
Customers rate their answers on a scale from 0 to 10, and based on their answers, they are placed into three groups: promoters, passives, and detractors.
Detractors, those who respond in the 0–6 range, are unhappy customers who can hurt your brand through negative word-of-mouth. Passives, or respondents who choose 7 or 8, are satisfied but indifferent customers who could be swayed by the competition. Finally, Promoters, or respondents who choose 9 or 10, are loyal superfans who will keep buying and referring others.
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How NPS helps companies like yours
The NPS survey gets you the data you need to quickly understand how customers feel about your brand and business overall, as well as to react to any negative feedback proactively.
Because NPS is a leading indicator of growth, it provides the best anchor for your customer experience management (CEM) program. NPS data can be used to predict and prevent customers from leaving, thus reducing churn rates. And having an NPS score makes it easy to set both internal performance benchmarks, as well as external benchmarks to compare against competitors in your industry.
Complement NPS with other metrics and insights from various points along the customer journey, and you’ll gain a comprehensive, actionable view of your customer experience performance.
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A Beginner’s Guide to
Net Promoter ScoreSM
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Net Promoter® and NPS® are registered trademarks — and Net Promoter Score℠ is a service mark — of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
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