Business Strategy
Definition
Net Promoter Score (NPS) is a customer loyalty metric based on a single question: 'How likely are you to recommend us to a friend or colleague?' on a 0–10 scale. Respondents are classified as Promoters (9–10), Passives (7–8), or Detractors (0–6). NPS = % Promoters − % Detractors.
NPS ranges from −100 (everyone is a detractor) to +100 (everyone is a promoter). Scores above 0 are generally considered good; above 50 is excellent; above 70 is world-class. NPS benchmarks vary significantly by industry — software companies typically target 30–50+, consumer products may be higher. NPS is predictive of growth because promoters refer others organically (reducing CAC) while detractors actively warn others away. Beyond the score, the follow-up question ('Why did you give that score?') provides qualitative signal on what drives satisfaction and dissatisfaction. Transactional NPS (measured after specific interactions) differs from relational NPS (measured periodically across the full customer relationship). Critics note that NPS can be gamed by surveying only happy customers and that the single-question format oversimplifies customer sentiment.
NPS is a leading indicator of churn and growth — declining NPS often predicts increased churn 2–3 quarters later. Building an NPS measurement system and acting on the feedback systematically is one of the highest-leverage customer retention investments. A marketing consultant or business advisor can help you design your NPS program, interpret results, and develop response protocols for detractors.