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Net Promoter Score (NPS)

What Is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is a customer experience metric that measures how likely customers are to recommend a company’s product or service to others. It is widely used to gauge satisfaction and loyalty, as it reflects how customers feel about their overall relationship with a brand.

How to Calculate Net Promoter Score (NPS)

Here is a step-by-step process to calculate Net Promoter Score (NPS):

  • Ask them a simple question: “On a scale of 0 to 10, how likely are you to recommend us?”
  • Categorize respondents into: Promoters, Passives, and Detractors.
  • Calculate what percentage of respondents scored:
  • Subtract the percentage of Detractors from the percentage of Promoters: to arrive at your NPS.

Formula for Net Promoter Score (NPS)

Net Promoter Score (NPS) = % of Promoters – % of Detractors

Benchmark

  • A score above 30 is considered good
  • A score above 50 is excellent
  • A score above 70 is world-class

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FAQ's

It depends on business goals. Stable businesses may measure annually or quarterly, while fast-growing companies may check NPS monthly or after key customer interactions.

Yes. A strong NPS often correlates with higher customer retention, stronger referrals, and greater lifetime value. While not a financial metric, it is a leading indicator of potential growth.