Net Promoter Score
The Net Promoter Score is a metric that measures customer loyalty and satisfaction with a product or service. It is calculated based on a simple question: "How likely is it that you would recommend this product/service to a friend or colleague?" Customers are asked to rate their likelihood on a scale of 0-10, with 0 being "not at all likely" and 10 being "extremely likely".
The scores are then categorized into three groups: Promoters (scores 9-10), Passives (scores 7-8), and Detractors (scores 0-6). The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The resulting score ranges from -100 to 100. A high NPS indicates that customers are satisfied and likely to recommend the product or service to others, while a low NPS indicates dissatisfaction and the need for improvement.