Net Promoter Score (NPS)

Net Promoter Score is a customer loyalty metric used to gauge the likelihood of customers recommending a company's product or service to others.

Customers are asked to rate their willingness to refer the company or their product or service on a scale from 0 to 10.

Based on their responses, customers are classified into three categories: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6).

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, yielding a score between -100 and 100.

Higher NPS score means the customers are very likely to spread positive word-of-mouth about the company's offerings to others and that can also lead to increased customer retention and business growth.