Net Promoter Score (NPS) is a useful key performance indicator (KPI) that determines how willing a customer would be to recommend a company’s product or service to others.
The Net Promoter Score or NPS is gauged on an index ranging from -100 to +100. Customer satisfaction with a product or service can be determined from this particular metric. Currently, for example, Apple has an industry-leading score of +72 for its laptops.
NPS is used by a large number of companies as part of the customer relationship management (CRM) strategy as it is easy to calculate. Customers are asked on a scale of 1-10 how likely they are to recommend the product or service to a friend. Respondents are then divided into three categories: Detractors (0-6), Passives (7-8) and Promoters (9-10). The Net Promoter Score is then calculated by using this simple formula:
(Number of promoters – number of detractors) / (number of respondents) x 100
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