Introduction to the Net Promoter Score (NPS) KPI
The Net Promoter Score (NPS) KPI measures how likely customers are to recommend your product or service to others. It’s one of the most widely used customer experience and loyalty metrics, offering clear insight into brand perception and long-term customer relationships.
What Is Net Promoter Score (NPS)?
NPS is collected by asking a single question:
“How likely are you to recommend us to a friend or colleague?”
Customers rate their answer on a scale from 0 to 10 and are categorized into:
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Promoters (9–10): Loyal, enthusiastic customers
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Passives (7–8): Satisfied but not enthusiastic
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Detractors (0–6): Unhappy customers who may discourage others
The formula is:
NPS = % Promoters – % Detractors
Why This KPI Matters
NPS offers a simple yet powerful measure of customer loyalty. It helps companies understand:
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Overall customer sentiment and brand love
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Likelihood of organic growth through referrals
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Pain points causing dissatisfaction
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Effectiveness of customer experience initiatives
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Risks of churn and negative word-of-mouth
Higher NPS scores indicate strong loyalty, while lower scores highlight critical issues that may impact retention and revenue.
How to Use This KPI Effectively
Organizations often segment NPS by customer type, product, region, or lifecycle stage to uncover actionable patterns. Pairing NPS with Customer Satisfaction Score (CSAT), Customer Effort Score (CES), Churn Rate, and Retention Rate gives a holistic view of customer health and helps shape effective improvement strategies.