Net Promoter Score (NPS)
Net Promoter Score (NPS) measures customer experience and predicts business growth based on surveying customers on "How likely are you to recommend our company to a friend or colleague?" Responses range from 0 (not at all likely) to 10 (extremely likely).
Those scoring the experience a 9 or 10 are called Promoters. Passives score 7-8. Detractors score from 0-6. NPS equals the percentage of Promoters minus the percentage of Detractors. Higher overall NPS indicates happier customers who drive growth through referrals and repeat purchases.
NPS provides a leading indicator of customer loyalty and satisfaction levels. Sales and service teams should collaborate to monitor NPS trends and improve experiences. Identifying root causes of detractors also enables targeted improvement actions that increase referrals, retention, and expansion.