Definition of Net Promoter Score
The Net Promoter Score (NPS) is a key figure that companies can use to assess how satisfied their customers are and how strong their loyalty to the company is. With the help of the NPS, companies receive a value that provides information on how willing their customers are to recommend the company to others. The basis for this is a simple and standardized survey.
The NPS is used across industries and internationally to measure customer loyalty. Thanks to modern evaluation systems, customer feedback can now be processed and analyzed quickly. Customer satisfaction is surveyed using a single, easy-to-understand question, usually:
"How likely is it that you would recommend company X to others?"
To determine the Net Promoter Score, respondents give their answer on a scale of 0 to 10, with 0 being very negative and 10 being extremely positive. On this basis, customers are divided into three groups:
0-6: Detractors
These customers are dissatisfied, do not recommend the company to others and are often critical, for example in the form of negative reviews.7-8: Indifferent
People in this category have a neutral attitude towards the company. They do not play a role in the calculation of the NPS.9-10: Promoters
These customers are very satisfied, have a positive attitude towards the company and actively recommend it to others.
To calculate the NPS, the percentage of detractors is subtracted from the percentage of promoters. For example, if the percentage of promoters is 60 percent and the percentage of detractors is 30 percent, the NPS is 30. The possible value range of the Net Promoter Score is from -100 to +100.