Net promoter score (NPS)

Imagine you threw a party and the next day you text your friends with, "So, on a scale from 'I would recommend your parties to everyone' to 'I'd rather watch paint dry', how much did you enjoy it?" That's the Net Promoter Score, a nifty little number companies use to gauge how likely you’d recommend them to others, all while secretly hoping you're not too tired to spread the good word after you've had your fun.

Net Promoter Score (NPS) is a widely utilized metric that assesses customer loyalty by gauging the willingness of customers to recommend a company's products or services to others. It is calculated by subtracting the percentage of detractors (customers unlikely to recommend) from the percentage of promoters (customers highly likely to recommend) based on responses to a single question, typically rated on a scale from 0 to 10. This score provides businesses with insights into customer satisfaction and can be indicative of future revenue growth. Companies often use NPS to track overall customer sentiment and differentiate their strategic efforts to improve customer experiences and enhance loyalty. A higher NPS is generally considered beneficial, as it suggests strong customer advocacy and potential organic growth through positive word-of-mouth.