Net Promoter Score: Your customer satisfaction barometer
One simple question that tells you what customers really think about you.
Net Promoter Score (NPS) is a standardized method for measuring customer satisfaction. It is based on a single question: 'How likely is it that you would recommend us to a friend or colleague?' Customers respond on a scale of 0-10.
The three customer groups
Based on the response, customers are divided into three groups:
- Promoters (9-10): Enthusiastic fans who actively recommend and stay loyal
- Passives (7-8): Satisfied but not enthusiastic. Vulnerable to competitor offers
- Detractors (0-6): Unhappy customers who can spread negative word-of-mouth
NPS ranges from -100 (all Detractors) to +100 (all Promoters). A score above 0 means more fans than critics.
Why NPS matters
NPS demonstrably correlates with business growth. Companies with high NPS grow faster, have lower Churn Rates and benefit from organic growth through referrals. Promoters also have a higher Customer Lifetime Value.
Using NPS effectively
Collecting NPS is only the first step. The real value lies in systematically handling the feedback:
- 1 Timing: Survey after relevant interactions (purchase, support, delivery)
- 2 Follow-up question: Always ask why they gave that rating
- 3 Closed loop: Contact detractors and resolve issues
- 4 Promoter activation: Use enthusiastic customers for referral programs
NPS limitations
NPS is a valuable signal, but not a complete view of customer satisfaction. Supplement it with other metrics like CSAT (Customer Satisfaction Score), CES (Customer Effort Score) and Repeat Purchase Rate for a complete picture.