What is NPS?
NPS definition: NPS is an acronym of Net Promoter Score; it is a system that brands can use to gauge the quality of their customer relationships.
Brands generate their NPS by posing one simple question (or a slight variation of it) to all users:
“How likely are you to recommend this product/service/brand to your friends, family or colleagues?”
Customers can respond by selecting a number from one (not likely) to ten (highly likely). This then categorizes customers into one of the following:
- Detractors: customers who select 0-6
- Passive: customers who select 7-8
- Promoters: customers who select 9-10
Based on the number of people in each category brands are given a score from zero to 100. The closer to 100, the better the score.
NPS is used by many top brands and is considered to have a direct correlation to income and growth. However, there are many people out there who believe this to be false.