NPS Meaning and
Definition
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NPS is an acronym that stands for Net Promoter Score. It is a metric used to measure customer loyalty and gauge the level of satisfaction and advocacy among customers towards a company or brand. The concept of NPS was developed by Fred Reichheld, Bain & Company, and Satmetrix in 2003.
The Net Promoter Score is based on a simple question asked to customers: "On a scale of 0 to 10, how likely are you to recommend our company/brand/product/service to a friend or colleague?" Based on their response, customers are categorized into three groups: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6).
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The resulting score can range from -100 to +100. A positive score indicates that more customers are likely to recommend the company, while a negative score suggests a higher number of dissatisfied customers.
The Net Promoter Score serves as a valuable tool in evaluating customer loyalty and overall business performance. It helps companies identify areas of improvement by focusing on addressing customer concerns and increasing customer satisfaction. NPS has become a widely used metric in various industries and is often used to benchmark and compare performance across companies within the same sector.
Common Misspellings for NPS
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