Net Promoter Score (NPS)

Net Promoter Score (NPS) is the no. 1 measuring method when it comes to customer loyalty. It is popular for its simplicity and the benefit it gives. And you don’t have to analyse the results of a large and complex survey.

The power of NPS is hidden in the simplicity of just one simple question: What is the likelihood that you would recommend (our company) to a colleague or friend? It was developed by Fred Reichheld, Bain & Co and Satmetrix in the 1990s and they presented the method in the book, The Ultimate Question.

When you send out the NPS question to your customers they can answer on a scale from 0-10, where 0 means not likely at all and 10 means very likely. Then, depending on the answers, you divide your customers into three different categories.

0-6 = "Critics" or "Detractors"
7-8 = "Passives"
9-10 = "Ambassadors" or "Promoters"

Net Promoter Score is then calculated: NPS = percentage of Promoters − percentage of Detractors.