Net Promoter Score (NPS) is a widely used customer loyalty metric calculated as the percentage of promoters minus the percentage of detractors. It is based on the question: *"How likely are you to recommend [product/service] to a friend or colleague?"* with responses on a 0-10 scale. - **Promoters (9-10):** Loyal customers likely to advocate for the brand. They are enthusiastic and likely to drive positive word-of-mouth. - **Passives (7-8):** Neutral customers who may not actively promote or detract. They are satisfied but not actively engaged. - **Detractors (0-6):** Unhappy customers who may discourage others from using the product. They may spread negative feedback. > [!formula] > $NPS = \% \text{Promoters} - \% \text{Detractors}$  ## Why NPS Matters - It provides a simple, low-friction way to gauge customer sentiment. - It serves as a proxy for customer loyalty and product value. - It is easy to track over time and benchmark against competitors. ## Limitations and Criticism - The question is **hypothetical** and may not reflect actual customer behavior. - Survey biases, can distort results. - It does not provide granular insights into *why* customers feel a certain way. ## Real-World Applications NPS is commonly collected through post-interaction surveys, emails, or pop-ups after customer support interactions, product onboarding, or new feature releases. Businesses use NPS to assess brand advocacy, identify customer pain points, and prioritize improvements. ## Related Concepts - [[Customer Satisfaction Score (CSAT)]] Measures immediate satisfaction with a specific interaction. - [[Virality Coefficient]] The extent to which customers share and promote a product organically. - [[Customer Referral Rate (CRR)]] Tracks actual referrals rather than just intent. --- ## References > The path to sustainable, profitable growth begins with creating more promoters and fewer detractors and making your net-promoter number transparent throughout your organization - [Original HBR article: The One Number You Need to Grow](https://web.archive.org/web/20200601163923mp_/https://hbr.org/2003/12/the-one-number-you-need-to-grow) - [Measuring Your Net Promoter Score℠ | Bain & Company](https://www.netpromotersystem.com/about/measuring-your-net-promoter-score/)