Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement that is calculated by asking customers on a scale of 0 to 10 how likely they are to recommend your product or service to others—but theres a lot more to the story.
The Net Promoter Score ranges from -100 to 100. It measures customers willingness to recommend a companys products or services to others. It is used as a proxy for determining a customers overall satisfaction with a companys product or service and the customers loyalty to the brand.
NPS surveys can be used by businesses to gather feedback on any aspect of their customers experiences. A product team may send the NPS question immediately after a customer uses the companys software product for the first time. They may also send it to the customer after 90 days or a year of using the product.
NPS scoring can be used to assess customer satisfaction in various industries. Customers may be asked the NPS question after they shop at a grocery store, rent a car, or make a purchase in a shopping mall.
Detractors assigned a score of 6 or less. The product or service does not excite them. They are unlikely to purchase from the company again, and their negative word of mouth could potentially harm its reputation.
Passives received a 7 or 8 on the scale. They are somewhat satisfied, but they would easily switch to a competitors offering if given the opportunity. They are unlikely to spread negative word of mouth, but they are not enthusiastic enough about your products or services to promote them.
Promoters responded with a score of 9 or 10. They adore the companys products and services. They are the repeat buyers, the enthusiastic evangelists who recommend its products and services to other potential buyers.
The Net Promoter Score (NPS) is calculated by subtracting the percentage of customers who are detractors from the percentage who are promoters. The Net Promoter Score, which ranges from -100 to 100, is the result. At one end of the spectrum, if all of the surveyed customers gave a score of less than or equal to 6, the NPS would be -100. On the other end of the spectrum, if all customers answered the question with a 9 or 10, the total Net Promoter Score would be 100.
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