Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement that is calculated by asking customers on a scale of 0 to 10 how likely they are to recommend your product or service to others—but there's a lot more to the story.
The Net Promoter Score ranges from -100 to 100. It measures customers' willingness to recommend a company's products or services to others. It is used as a proxy for determining a customer's overall satisfaction with a company's product or service and the customer's loyalty to the brand.
Why Should You Use a Calculated Net Promoter Score?
NPS surveys can be used by businesses to gather feedback on any aspect of their customers' experiences. A product team may send the NPS question immediately after a customer uses the company's software product for the first time. They may also send it to the customer after 90 days or a year of using the product.
NPS scoring can be used to assess customer satisfaction in various industries. Customers may be asked the NPS question after they shop at a grocery store, rent a car, or make a purchase in a shopping mall.
'Detractors' assigned a score of 6 or less. The product or service does not excite them. They are unlikely to purchase from the company again, and their negative word of mouth could potentially harm its reputation.
'Passives' received a 7 or 8 on the scale. They are somewhat satisfied, but they would easily switch to a competitor's offering if given the opportunity. They are unlikely to spread negative word of mouth, but they are not enthusiastic enough about your products or services to promote them.
'Promoters' responded with a score of 9 or 10. They adore the company's products and services. They are the repeat buyers, the enthusiastic evangelists who recommend its products and services to other potential buyers.
The Net Promoter Score (NPS) is calculated by subtracting the percentage of customers who are detractors from the percentage who are promoters. The Net Promoter Score, which ranges from -100 to 100, is the result. At one end of the spectrum, if all of the surveyed customers gave a score of less than or equal to 6, the NPS would be -100. On the other end of the spectrum, if all customers answered the question with a 9 or 10, the total Net Promoter Score would be 100.
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