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A Net Promoter Score or commonly referred to as NPS®, is a metric used in customer experience programs.
It serves to measure the loyalty of customers to a particular company.
NPS is a globally recognised customer experience metric, which was first developed in 2003 by Bain and Company. Millions of businesses now use NPS to measure and track how they’re perceived by their customers.
To calculate your final NPS – subtract the percentage of Detractors from the percentage of Promoters.
For example, if 10% of respondents are Detractors, 50% are Passives and 40% are Promoters, your NPS® would be 40-10 = 30.
What is deemed as a good Net Promoter Score?
This is heavily dependent on the type of industry your business is in. Defining what makes a ‘good’ score is reliant on comparisons from within the same industry. The visual below provides an overview of how performance results can be presented.
Net Promoter, NPS, and the NPS-related emoticons are registered U.S. trademarks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.
