Net Promoter Score (NPS)

Net Promoter Score, commonly abbreviated as NPS, is a customer loyalty metric designed to measure the likelihood that customers will recommend an organization's products or services to others. Developed by Fred Reichheld, the methodology is based on a single question:

"How likely are you to recommend our company, product, or service to a friend or colleague?"

Respondents answer using a scale from 0 to 10 and are classified into three categories:

• Promoters (9–10), who are highly satisfied and likely to recommend the organization.

• Passives (7–8), who are generally satisfied but less enthusiastic.

• Detractors (0–6), who are dissatisfied or unlikely to recommend the organization.

The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The result ranges from -100 to +100, providing a standardized indicator of customer advocacy.

Although widely adopted across industries, NPS should be interpreted alongside additional customer metrics because willingness to recommend represents only one dimension of customer relationships.