Net Promoter Score (NPS): Complete Guide to Measuring Loyalty
Net Promoter Score (NPS) is the world's most popular metric for measuring customer loyalty and predicting business growth. With a single question, NPS segments customers into Promoters, Passives, and Detractors.
Key Takeaways
- •NPS measures likelihood to recommend on a 0-10 scale
- •Promoters (9-10) minus Detractors (0-6) equals your NPS (-100 to +100)
- •Above 0 is acceptable, above 50 is excellent, above 70 is world-class
- •Always follow up with "Why?" to get actionable feedback
- •Track trends over time rather than obsessing over absolute scores
What Is Net Promoter Score?
NPS measures how likely customers are to recommend your company. The question: "On a scale of 0 to 10, how likely are you to recommend [Company] to a friend or colleague?"
Promoters (9-10): Loyal enthusiasts. Passives (7-8): Satisfied but unenthusiastic. Detractors (0-6): Unhappy customers.
How to Calculate NPS
NPS = % Promoters - % Detractors
Example: 60% Promoters, 25% Passives, 15% Detractors → NPS = 60 - 15 = +45
NPS Benchmarks by Industry
Consulting: 62, Technology: 58, E-commerce: 45, Financial Services: 44, Healthcare: 38, Telecom: 24. General: Below 0 needs work, 0-30 good, 30-70 great, 70+ world-class.
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Frequently Asked Questions
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