What Is Net Promoter Score? Definition & How to Calculate It

Knowing how satisfied customers are with your business can be the key to continued growth. One of the most effective ways to find out is by using the Net Promoter Score (NPS). NPS is an important metric for measuring customer loyalty.

Knowing your NPS score helps you understand how strong the relationship between your business and your customers is. The higher the score, the greater the chance that customers will become loyal promoters. Let's learn more about the benefits and how to calculate NPS in this article!

What Is Net Promoter Score (NPS)?

The Net Promoter Score (NPS) is a metric that measures customer loyalty to a product, service, or brand.

Simply put, NPS shows how likely a customer is to recommend your business to others. This score is obtained through a short survey that asks several questions with answers on a scale of 0 to 10.

The concept of NPS was first introduced by Fred Reichheld in a Harvard Business Review article in 2003. Today, NPS remains one of the key indicators for assessing customer experience.

Why Is NPS Important for Businesses?

Net Promoter Score (NPS) is important to understand because it helps businesses know the extent to which customers are satisfied and loyal to the products or services your business offers.

By regularly monitoring NPS, you can assess whether customers are likely to recommend your business or are potentially switching to competitors.

A high NPS score indicates that customers are satisfied and are potentially able to become promoters who voluntarily recommend your business to others.

Conversely, a low NPS score can be an important signal that there are aspects of service or products that need to be improved immediately to maintain the positive customer experience.

Read also: Customer Loyalty: Definition, Indicators, and How to Increase It

NPS Formula and Calculation Method

To calculate the NPS score, the first step is to collect customer responses through a survey with a 0–10 rating scale. The NPS score is a number that indicates the level of 

Selsi Selvia

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