Net Promoter Score
A metric measuring customer loyalty based on likelihood to recommend your business to others.
Formula
NPS = % Promoters - % Detractors
Example
If 60% of respondents are Promoters and 20% are Detractors, your NPS is 40.
Category
Metrics & Scoring
Full Definition
Net Promoter Score (NPS) is the gold standard metric for measuring customer loyalty and predicting business growth. Developed by Fred Reichheld at Bain & Company in 2003, NPS answers one fundamental question: "On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?"
Based on their responses, customers are categorized into three groups:
Promoters (9-10): Loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (7-8): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.
NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score between -100 and +100. A positive score is generally good, while scores above 50 are considered excellent.
Common Use Cases
Real-World Examples
Scenario
A hotel sends a post-stay survey asking "How likely are you to recommend The Grand Hotel to a friend?" Sarah, who loved the spa and room service, rates 10.
Outcome
Sarah is a Promoter. She later books again for her anniversary and tells three colleagues about the hotel.
Scenario
A software company surveys users quarterly. Mike rates 6 because the product crashes frequently and support is slow.
Outcome
Mike is a Detractor. He posts a negative review on G2 and switches to a competitor within 3 months.
Scenario
A restaurant chain tracks NPS across 50 locations. Location #12 has NPS of 65, while Location #34 has NPS of 15.
Outcome
Management investigates Location #34, discovers staffing issues, and implements training. NPS improves to 45 within 6 months.
Related Terms
Customer Satisfaction Score (CSAT)
A metric measuring customer satisfaction with a specific interaction, product, or service.
Customer Loyalty
The likelihood that customers will continue to do business with you and recommend you to others.
Promoter
A customer who gives a 9 or 10 on NPS, indicating high loyalty and likelihood to recommend.
Detractor
A customer who gives a 0-6 on NPS, indicating dissatisfaction and potential negative word-of-mouth.
Passive
A customer who gives a 7 or 8 on NPS, indicating satisfaction but low enthusiasm.