Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction. It is based on the following question: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?" Respondents are then categorised into three groups:
These are customers who are loyal and enthusiastic about the product or service and are likely to recommend it to others.
These are customers who are satisfied but not necessarily loyal or enthusiastic. They are less likely to recommend the product or service than promoters.
These are customers who are dissatisfied and may even spread negative word-of-mouth about the product or service.
To calculate the NPS, the percentage of detractors is subtracted from the percentage of promoters. The resulting score can range from -100 (if all respondents are detractors) to +100 (if all respondents are promoters).