NPS (Net Promoter Score)
Measure the loyalty metric that predicts growth: how likely customers are to recommend you.
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Why NPS is the Gold Standard
Net Promoter Score (NPS) is used by two-thirds of Fortune 1000 companies because it correlates strongly with revenue growth and customer lifetime value. By asking one simple question—'How likely are you to recommend us?'—you can segment customers into Promoters (9-10), Passives (7-8), and Detractors (0-6), each requiring different engagement strategies.
Calculating and Interpreting NPS
NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Scores range from -100 to +100. Generally, above 0 is good, above 20 is favorable, above 50 is excellent, and above 70 is world-class. However, benchmarks vary significantly by industry, so compare yourself to competitors.
The Critical Follow-Up Question
The magic of NPS isn't just the score—it's the qualitative feedback from the follow-up question: 'What's the main reason for your score?' This reveals why Promoters love you (so you can do more of it), why Passives are on the fence (so you can convert them), and why Detractors are unhappy (so you can fix it or prevent others from having the same experience).