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THE TECHNICAL LANGUAGE OF DIGITAL B2B INFRASTRUCTURE

METRIC
REVENUE OPERATIONS

Net Promoter Score (NPS)

A customer-feedback metric calculated by subtracting the percentage of detractors from the percentage of promoters on a standard recommendation scale.


BUSINESS RELEVANCE

NPS gives leadership a simple, comparable signal of customer loyalty over time and highlights promoters for referrals and detractors for recovery, which can inform retention and expansion priorities.


IMPLEMENTATION EXAMPLE

A survey receives 500 responses: 260 score 9 or 10, 150 score 7 or 8, and 90 score 0 to 6. Promoters are 52% and detractors 18%, so NPS is 52 minus 18, which equals 34.


LIMITATIONS

NPS compresses an 11-point scale into one number, so very different distributions can produce the same score. It is sensitive to timing, sample and response bias, and it does not explain why customers feel as they do without follow-up questions.


TECHNICAL EXPLANATION

Respondents answer how likely they are to recommend the company or product on a 0 to 10 scale. Scores of 9 to 10 are promoters, 7 to 8 are passives and 0 to 6 are detractors. NPS equals the percentage of promoters minus the percentage of detractors, giving a range from minus 100 to plus 100, and passives count only in the total number of responses.


Secondary Topics

Experience Design

Sources

Bain and Company — Measuring Your Net Promoter Score — https://www.netpromotersystem.com/about/measuring-your-net-promoter-score/; Qualtrics — What is Net Promoter Score (NPS)? — https://www.qualtrics.com/experience-management/customer/net-promoter-score/