What is a Net Promoter Score?
The definition of a net promoter score (NPS) is a metric for gauging how likely customers would be to recommend your brand to colleagues and friends. A net promoter score is based on the perspective that each company’s customer base can be divided into three categories: promoters, passives and detractors. By asking the question, “how likely a customer would be to refer a company to a friend or colleague” you can gauge how willing your customer base is to promote your company.
Customers gauge their likeliness to refer a company on a scale of 1-10 and are then categorized:
- Promoters (9-10)-customers who promote a brand actively
- Passives (7-8)- satisfied though unenthusiastic customers
- Detractors (0-6)- unsatisfied customers who can diminish a brand’s reputation
How to Calculate a Net Promoter Score
A net promoter score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Net Promoter as an Operating Model
A Net Promoter operating model can be used to align entire companies on the idea of building a loyal base of customers. In a Net Promoter operating model, product teams, sales, marketing and customer service place customer satisfaction as the centerpiece of all business operations, gauging success by how likely customers are to promote the company to friends and colleagues.