Net Promoter Score (NPS) is a customer loyalty metric that measures how likely a customer is to recommend a company’s product or service to others. NPS is calculated by asking customers a single question:
On a scale of 0 to 10, how likely are you to recommend [company name] to a friend or colleague?
Customers who respond with a score of 9 or 10 are considered promoters, customers who respond with a score of 7 or 8 are considered passives, and customers who respond with a score of 6 or lower are considered detractors. The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters.
An NPS score of 0 to 60 is considered to be poor, a score of 61 to 70 is considered to be average, a score of 71 to 80 is considered to be good, and a score of 81 to 100 is considered to be excellent.
NPS is a valuable metric for measuring customer loyalty and satisfaction. It can be used to track customer sentiment over time, identify areas where customer experience can be improved, and prioritize marketing and sales efforts.
Here are some of the benefits of using NPS:
- It is a simple and easy-to-understand metric. NPS is calculated using a single question, which makes it easy for customers to understand and respond to.
- It is a reliable metric. NPS has been shown to be a reliable predictor of customer behavior. Companies with high NPS scores tend to have higher customer retention rates and sales growth.
- It is a versatile metric. NPS can be used to measure customer loyalty across different industries and product categories.
If you are looking for a way to measure customer loyalty and satisfaction, NPS is a great option. It is a simple, reliable, and versatile metric that can help you to improve your customer experience and boost your business growth.