Net Promoter Score (NPS)
What is Net Promoter Score?
Net Promoter Score (NPS) is a loyalty metric based on one question: "How likely are you to recommend us to a friend or colleague?" on a 0 to 10 scale. People answering 9 or 10 are promoters, 7 or 8 passives and 0 to 6 detractors. NPS is the percentage of promoters minus the percentage of detractors, from -100 to +100.
Why Net Promoter Score matters
NPS is simple and widely understood. The number matters less than the follow-up question asking why, which is where the insight is.
Related marketing terms
Voice of customer is gathering what customers say they need and feel, in their own words, from interviews, surveys, reviews and conversations.
Word-of-mouth marketing is when customers recommend you to others, and the work a company does to make that more likely and easier.
Referral marketing rewards existing customers for bringing in new ones, for example with credits or discounts for both sides.
Churn rate is the share of customers who stop using or paying for a product in a period, such as a month. Lower is better.