Net Promoter Score® (NPS) is a customer loyalty metric developed by (and a registered trademark of) Fred Reichheld, Bain & Company, and Satmetrix.
Net Promoter Score is calculated based on customers' responses on a single question survey: How likely are you to recommend our company/product to a friend or colleague? Respondents can answer on an 11-point scale, ranging from 0 (not at all likely) to 10 (extremely likely).
After the question has been asked, the individual responses to the question are captured and segmented based on predefined criteria:
9-10 - Promoters: They are loyal customers that can act as brand ambassadors making positive referrals to potential customers.
7-8 - Passives: These customers feel satisfied with your business, but aren’t especially enthusiastic. While they won’t spread negative word about your brand, they won’t be too enthusiastic to promote it.
0-6 - Detractors: They are not happy with your product and are most likely to slip away, leave bad reviews and harm your business. Your should get in touch with your detractors, find out what are they unsatisfied with and do your best to solve the issue.
The Net Promoter Score is then calculated by subtracting the percentage of detractors from percentage of promoters.