What Is A Net Promoter Score (NPS)?
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a company’s products or services to others. NPS is measured by 1) having customers respond to a simple question and then ranking their responses as Promoters (9–10), Passives (7–8), and Detractors (0–6), and 2) subtracting the percentage of detractors from the percentage of promoters for a final NPS score. This metric provides valuable insights into customer satisfaction.
Benefits of Measuring Net Promoter Score (NPS):
There are several benefits to tracking NPS:
Customer Loyalty Insights: Identifies loyal customers and potential churn risks
Actionable Feedback: Provides specific areas to target for improvement
Team Performance Tracking: Reflects how well employees influence customer sentiment
Benchmarking: Helps compare performance against competitors or industry standards
Strategic Decision-Making: Informs investments in CX to enhance satisfaction
