The Net Promoter Score (NPS) is a key metric that helps businesses measure customer loyalty and satisfaction. It’s widely used because it provides a simple, quantitative way to gauge how customers feel about a brand, product, or service—and it correlates strongly with growth potential and customer retention.
Why NPS Is Important for a Business
Measures Customer Loyalty
NPS focuses on whether customers would recommend your company to others—a strong indicator of loyalty.
Loyal customers often buy more, stay longer, and refer others.
Predicts Growth
Companies with high NPS tend to grow faster because satisfied customers bring in new ones through positive word-of-mouth.
Identifies Strengths and Weaknesses
By analyzing Promoters, Passives, and Detractors, businesses can pinpoint what’s driving satisfaction or dissatisfaction.
Drives Customer-Centric Improvement
NPS feedback helps prioritize actions that have the biggest impact on customer experience.
Simple and Benchmarkable
NPS is easy to track over time and compare across industries.
How NPS Is Measured
Ask One Core Question:
“On a scale from 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?”
Categorize Respondents:
Promoters (9–10): Loyal enthusiasts who will recommend and fuel growth.
Passives (7–8): Satisfied but unenthusiastic customers; vulnerable to competitors.
Detractors (0–6): Unhappy customers who can damage your brand through negative word-of-mouth.
Calculate the Score:
NPS = % of Promoters − % of Detractors
The score ranges from –100 to +100 and it's a whole number, not a percentage.
Example:
60% Promoters, 20% Passives, 20% Detractors
NPS = 60% – 20% = +40
Typical Benchmarks
Above 50: Excellent (loyal customer base)
0–50: Good (room for improvement)
Below 0: Problematic (significant customer dissatisfaction)
Here's an example of a Net Promoter Score graph:
