Net Promoter Score FAQ

Net Promoter Score FAQs

What is a Net Promoter ScoreSM?

A Net Promoter Score or commonly referred to as NPS®, is a metric used in customer experience programs.

 

Why use the Net Promoter Score metric?

It serves to measure the loyalty of customers to a particular company.

 

What is the origin of the Net Promoter Score?

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.

 

How does the Net Promoter Score measure a customers experience?

By asking customers “On a scale from 1 to 10, how likely are you to recommend this company to a friend or colleague?”

Respondents can give a rating between 1 (not likely) and 10 (extremely likely) and, depending on their response; customers fall into one of three categories to establish a score:

Promoters respond with a score of 9 or 10. They are typically loyal and enthusiastic customers.

Passives respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters.

Detractors respond with a score of 1 to 6. These are unhappy customers who are unlikely to buy from you again and may even discourage others from buying from your company.

 

How is the Net Promoter Score calculated?

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.

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