A complete guide to NPS (Net Promoter Score)

Net Promoter Score (NPS) is a widely used KPI that gauges customer loyalty and advocacy, playing a critical role in informing product strategy and predicting customer retention and growth. Introduced by Fred Reichheld, NPS is calculated from surveys asking customers how likely they are to recommend a product or company, categorizing responses into Promoters, Passives, and Detractors, and subtracting the percentage of Detractors from Promoters. While NPS provides insights into current customer enthusiasm, it lacks the ability to predict specific growth metrics, which can be complemented by the Earned Growth Rate (EGR) for a more comprehensive understanding. Improving NPS involves enhancing customer satisfaction, focusing on key interactions, and investing in robust customer support to convert Passives and Detractors into Promoters. The timing and method of deploying NPS surveys are crucial and should align with the nature of the customer relationship, whether through recurring emails for ongoing services or one-off surveys post-purchase.

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