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Net Promoter Score or NPS is a metric used to indicate your customers’ willingness to recommend your brand to their friends and family. NPS is a measure of customer loyalty and offers insights into your customers’ perception of your company, its products and services, and the quality of your customer service.
NPS can help you identify customers who may possibly churn, those who are on the fence, and those who are likely to remain your long-term brand advocates.
NPS is essentially calculated based on customers’ responses to the question – “How likely is it that you would recommend our company/product/service to a friend or colleague?” Customers have to give their ratings on a scale of 0-10. Based on their score, it classifies them into the following:
- Promoters: Customers who rate you 9 or 10 on the NPS survey. They are your brand advocates
- Passives: Customers who rate you 7 or 8. They are not as loyal as your promoters and may shift to your competitors if they see better value in their products or services.
- Detractors: Customers who rate you between 0 and 6. These customers that are dissatisfied with your offerings and are highly prone to churn.
You can reveal your NPS by subtracting the percent of detractors from the percent of promoters during a given period.
