Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a widely used metric to gauge customer loyalty and satisfaction. It measures how likely customers are to recommend a company’s products or services to others on a scale from 0 to 10. The score provides insights into overall customer satisfaction, helping businesses understand their customers' perception and their likelihood of referring new customers.

To calculate NPS, respondents are divided into three categories:

1. Promoters (score 9-10): Customers who are highly satisfied and likely to recommend the product.

2. Passives (score 7-8): Customers who are satisfied but unlikely to actively promote the product.

3. Detractors (score 0-6): Customers who are dissatisfied and may spread negative feedback.

The formula for NPS is:

NPS = % of Promoters - % of Detractors

NPS scores range from -100 to +100. A positive NPS is generally a good sign, while a negative score indicates that improvements are needed in customer experience and satisfaction.