The Net Promoter Score (NPS) is a simple method to measure customer loyalty. This globally used KPI helps organizations gain insight into customer enthusiasm and loyalty. The NPS is determined by asking how likely a customer is to recommend your product or service to friends or family, on a scale of 0 to 10.
How NPS works
Customer responses are divided into three groups:
- Promoters (score 9-10): Loyal ambassadors who ensure growth.
- Passives (score 7-8): satisfied, but sensitive to competition.
- Detractors (score 0-6): dissatisfied customers who advertise negatively.
You calculate the NPS by subtracting the percentage of detractors from the percentage of promoters. The score ranges from -100 to +100.
how do you interpret the score?
- +20 or higher: you have fairly loyal customers.
- lower than 0: there is work to be done to increase customer loyalty.
- +100: an ideal situation in which all your customers are promoters.
NPS as part of your strategy
The power of NPS lies not only in measuring customer loyalty, but also in what you do with it. Combine NPS with other KPIs such as csat (customer satisfaction score) and ces (customer effort score) for a complete picture of customer feedback. Use these insights to continuously improve your customer experience.