How NPS works
The Net Promoter Score® (NPS®) is an easy way to measure an organization's customer loyalty.
The method was developed in 2003 by management consultant Fred Reichheld of Bain & Company, in co-operation with the company Satmetrix. The goal is to provide insight into customer loyalty, and focused steps to improve it. Different surveys show that organizations with a high NPS® have loyal customers with a higher repeat business rate.
To determine the NPS® we ask the customers to what extent he or she would recommend a particular organization, product, or service to others (friends, colleagues and family). The key question is:
How likely is it that you would recommend this company to your friends/family/colleagues?
Customers answers on a scale of 0 to 10. This score is divided into:
Promoters: customers who give a score of 9 or 10
Passives: customers who give a score of 7 or 8
Detractors: customers who give a score from 0 to 6