What is NPS?
Definition and meaning of NPS:
Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction.
It’s calculated by asking customers to rate their likelihood of recommending a service or product to others.
There are three categories of responses: Promoters, Passives, and Detractors.
- Promoters are customers who are likely to recommend the service or product and tend to be very loyal.
- Passives are customers who are satisfied but not enthusiastic about the service or product.
- Detractors are customers who are dissatisfied with the service or product and are unlikely to recommend it.
To calculate Net Promoter Score, you need to subtract the percentage of Detractors from the percentage of Promoters.
For example, if 20% of respondents are Detractors, 30% are Passives, and 70% are Promoters, your NPS score would be 70-20 = 50.
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