Net Promoter Score (NPS)

What is Net Promoter Score?

The Net Promoter Score (NPS) is a measurement looking into the customer experience of a brand and predict business growth. The metric is proven and widely known for transforming the business world and provides brands with the core measurement for customer experience management programs the world around.

The NPS metric was developed by and a registered trademark of Fred Reichheld, Bain & Company and Satmetrix. It was introduced by Reichheld in a Harvard Business Review article in 2003, “The One Number You Need to Grow“. The popularity and broad use have of it has been largely attributed to its simplicity from being just a single question.

How to calculate NPS?

Calculating NPS is based on the answer to a key question, using a 0-10 scale: How likely is it that you would recommend (the brand) to a friend or colleague? NPS index ranges from -100 to 100 measuring the willingness of consumers to recommend a product or service to others. It also can inform a brand of the loyalty that they hold within their sector. are then grouped as follows:

The score is then determined by subtracting the percentage of customers who are detractors from the percentage who are your promoters. what is generated is a score on the -100 to 100 scale called the Net Promoter Score.

Understanding NPS is a great starting point for learning more about the health of your business. To find out more you can read up on our Brand Tracking software BrandVision which uses 9 Key Metrics (NPS included) as a way to understand your Brand Equity.