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Net Promoter Score (NPS) measures how likely customers say they are to recommend your company to others, typically on a scale of 0-10.
This metric combines customer satisfaction, loyalty, and referral potential, and customers are usually classed as 'Detractors' (0-6), 'Passive' (7-8), or 'Promoters' (9-10). Net Promoter Score is key in assessing the health of customer relationships and gauging overall sentiment towards your offerings. It's useful to identify brand advocates and detractors, streamline customer success efforts, and forecast business growth through word-of-mouth traction.
% of Promoters - % of Detractors
To calculate NPS, first, survey your customers asking how likely they are to recommend your company on a scale of 0-10. Classify the responses as Detractors (0-6), Passives (7-8), and Promoters (9-10). Calculate the percentage of Promoters and Detractors. Then, subtract the percentage of Detractors from the percentage of Promoters.
Regularly survey customers to track changes over time, segment feedback to pinpoint areas for improvement, and connect NPS to customer experiences to validate data. To increase NPS, gain a deep understanding of customer feedback, then focus on product quality, delivering excellent customer service, engaging with users, and personalising the customer journey.
While NPS is a valuable indicator, it should be part of a broader process so you can understand the nuances of your customers' feedback. High scores don't guarantee growth; low scores don't signify imminent churn.
