Net Promoter Score (NPS)

What is a net promoter score?

Net promoter score (NPS) is a customer loyalty metric that gauges how likely customers are to recommend a company, product, or service to others. It is based on a single survey question with a 0-to-10 scale: "How likely are you to recommend [company/product/service] to a friend or colleague?"

How does a net promoter score work?

A NPS offers a simple yet powerful tool to collect honest feedback from customers and gauge customer sentiment and loyalty. Survey respondents are categorized into three groups based on their score:

• Promoters (9-10): Loyal enthusiasts who are likely to recommend your brand and drive positive word-of-mouth.
• Passives (7-8): Neutral customers who might not be highly engaged but aren't unhappy either.
• Detractors (0-6): Unhappy customers who could potentially damage your brand reputation through negative reviews or feedback.

While NPS surveys can be conducted at any time, it's recommended to establish a regular cadence (e.g., quarterly, biannually) to track trends and measure the impact of any implemented changes.

How to measure a net promoter score:

You can calculate NPS by subtracting the percentage of detractors from the percentage of promoters. Scores can range from -100 (all Detractors) to +100 (all Promoters).

A high positive score (closer to +100) indicates a strong customer base that is highly likely to recommend your brand. A negative score suggests a prevalence of detractors and potential brand reputation issues.

Why is a net promoter score important to marketers?

NPS provides a quick and actionable metric for customer loyalty. A high NPS score indicates a strong customer base that can fuel future growth. Marketers can use NPS to:

• Identify areas for improvement: Analyze feedback from detractors to understand their pain points and address them.
• Benchmark performance: Track NPS over time and compare it to industry averages to assess your relative standing.
• Prioritize customer experience initiatives: Focus efforts on improving areas that have the biggest impact on customer loyalty.
• Motivate customer advocacy: Encourage promoters to share positive experiences and recommendations.

Who needs to know what a net promoter score is:

• Ecommerce Managers: Understanding NPS is crucial for gauging customer satisfaction, informing marketing strategies, and driving sustainable growth.
• Customer Service Managers: NPS can help them identify at-risk customers and improve their overall customer experience.
• Product Managers: NPS feedback can be valuable for identifying product improvements that enhance customer satisfaction.

Use net promoter score in a sentence:

"Our recent NPS survey revealed a high score, indicating that a large portion of our customers would recommend our product to others."