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:

    1. Promoters (respond 9-10) are loyal enthusiasts fueling growth
    2. Passives (respond 7-8) are satisfied customers vulnerable to competition
    3. Detractors (respond 0-6) are unhappy customers impeding growth

    NPS-Score-ImageYou 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.

    Ryan Condon
    Post by Ryan Condon
    September 23, 2022
    Ryan is the Co-Founder and CEO of SATISFYD. Since 1998, Ryan has been working with global equipment manufacturers and dealer owner groups to build more customer-centric organizations that outperform the competition. Ryan is an equipment industry veteran and expert in customer and employee experience management. Ryan has delivered over 100 in-person classes and speeches to help educate and inform on the power of delivering unique and consistent customer and employee experiences. Ryan, and his wife, live in Austin, TX with their four kids. Ryan is an avid mountain biker and runner.

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