The Net Promoter Score (NPS) is a widely used metric to measure customer loyalty and gauge overall customer satisfaction with a business. It provides valuable insights into how likely your customers are to recommend your products or services to others. Here’s how NPS works for a business:
Surveying Customers: To calculate the NPS, a business typically conducts surveys or questionnaires, either after a purchase or at regular intervals. The key question asked is: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?”
Calculating NPS: The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The result can range from -100 to +100. A higher NPS indicates a more positive perception of your brand.
NPS = % Promoters – % Detractors
Using NPS for Improvement: