Net Promoter Score, or NPS, measures customer experience and predicts business performance by measuring the likelihood you're getting word-of mouth. This proven metric transformed the business world and now provides the core measurement for customer experience management programs the world round.

The NPS Calculation

A standard question is asked:

How likely is it that you would recommend [business] to a friend or colleague?

Customers can rate you on a 0 - 10 scale.

Respondents are grouped as follows:

• Promoters (score 9-10) are loyal enthusiasts who will actively refer you to others
• Passives (score 7-8) are satisfied but unenthusiastic customers.
• Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

Subtracting the percentage of Detractors from the percentage of Promoters yields the Net Promoter Score, which can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).

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What is a good NPS score?

Anything above 0 means you're getting more recommendations than negative word-of-mouth. The theoretical maximum is 100, although anything above 70 is considered outstanding.  Above 40 is considered great, 20 - 40 is considered good.

Anything below 0 means you're likely getting more negative recommendations than positive ones, which is an unsustainable position for any business.

NPS scores tend to be industry specific, for example telco's seem to sit around 0 while activity providers typically rate 60 or above.

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