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Net Promoter Score (NPS)

Net Promoter Score (NPS)  is a metric that is used to score customer loyalty. This metric measures how likely customers are to refer or recommend a company’s product or service to others. NPS helps gauge the overall customer satisfaction score and predicts business growth based on customer preferences. 

How to Calculate Net Promoter Score (NPS)

Formula of NPS: 

NPS = % Promoters – % Detractors

These score ranges from -100 to +100  

  • Promoters (9–10): Loyal enthusiasts are likely to refer others.
  • Passives (7–8): Satisfied but don’t want to show enthusiasm refers to customers.
  • Detractors (0–6): Unhappy customers who are not satisfied.

Where can we use  NPS?

  • To measure customer loyalty and experience with your business.
  • You can identify customers who are brand advocates and at-risk customers
  • Benchmarking customer satisfaction over time. 
  • These scores are effective in correlating with the revenue growth. 
  • Enables targeted follow-up with detractors and promoters

 Net Promoter Score (NPS) is a powerful tool for understanding customer perception and driving customer-focused strategies. It offers businesses clear insight into how customers truly feel and what can be done to turn customers into product advocates and extend referrals.