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What is Net Promoter Score or NPS


NPS or Net Promoter Score is a management tool which helps to measure customer experience and predict growth of the business.

To calculate NPS respondents are asked a key question :

 How likely is it that you would recommend [brand] to a friend or colleague? 

And they are asked to rate their response in 0-10 scale with 0 - being least likely to recommend and 10 means extremely likely to recommend. 

Respondents are grouped as follows:
 

  • Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

 
Subtracting the percentage of Detractors from the percentage of Promoters gives out the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).


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