NPS

Also known as Net Promoter Score. A score used to gauge customer satisfaction with and loyalty to a specific company or brand. Customers are asked to rate how likely they would be, on a scale of 1 to 10, to recommend a company/brand and/or its products and services to a friend or colleague. Respondents who choose a score of 0 to 6 are considered “detractors”; those who choose 7 or 8 are called “passives”; and those who select 9 or 10 are considered “promoters” of the brand.

To calculate the Net Promoter Score, the percentage of detractors is subtracted from the percentage of promoters. The NPS ranges from -100 to 100, with any positive score considered to be good and an NPS of 50 or more considered to be excellent.

The NPS metric – developed by Fred Reichheld, an author and business strategist; Bain & Company, a global management consultancy; and NICE Satmetrix, a provider of customer experience management software – is used by more than two-thirds of Fortune 1000 companies.


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