What is Net Promoter Score (NPS)?
Net Promoter Score is a methodology used to calculate the answer to a single question: How likely are you to recommend brand/dealer/product to a friend or colleague?
Why use Net Promoter Score?
The NPS methodology is a leading indicator of growth. When an organization strives to improve their NPS, they will experience faster growth, increased profits and likely outperform others in the market.
Calculating Net Promoter Score
NPS is calculated by dividing respondents into 3 categories:
- Promoters (respond 9-10) are loyal enthusiasts fueling growth
- Passives (respond 7-8) are satisfied customers vulnerable to competition
- Detractors (respond 0-6) are unhappy customers impeding growth
You are able to calculate NPS by subtracting the percentage of Detractors from the percentage of Promoters. NPS can range anywhere from –100 (all Detractors) to +100 (all Promoters).
Lean more about how to calculate Net Promoter Score here.
®Net Promoter, NPS, and Net Promoter Score are registered trademarks of SatMetrix Systems, Inc., Bain & Company, and Fred Reichheld
Originally published on October 19, 2016. Updated on September 23, 2022.
