Net Promoter Score (NPS) is said by some to be the ‘holy grail’ for understanding customer satisfaction, and in turn, customer loyalty. It is a simple score between -100 to 100 that helps organisations rank themselves within their industry and independently.

However, organisations are discovering that it can be used beyond just benchmarking themselves over time. It can shape cultural change, improve experiences and build happier long lasting customer relationships. These ultimately will impact the business on a financial level, and impacts how well the company connects with customers through its customer experience (CX).

How NPS measures customer loyalty

Net Promoter Score is a survey question that asks one simple question:

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

Respondents give a rating between 0 (not at all likely) and 10 (extremely likely) and, depending on their response, customers fall into one of three categories to establish a NPS score:

  • ‘Promoters’ respond with a score of 9 or 10
  • ‘Passives’ respond with a score of 7 or 8
  • ‘Detractors’ respond with a score of 0 to 6.

You then calculate your NPS using this formula:

NPS = % of Promoters ( — ) % of Detractors 

In this formula, the passive percentage is not used.

Based on this, your company’s NPS score will be a number from -100 to +100. Scores that are closer to -100 indicate that there are more detractors overall, and -100 tells us there are no Promoters. Scores that are closer to 100 tell us that there are more Promoters overall.