Standard : Net Promoter Score (NPS)
Description
Net Promoter Score (NPS) measures overall customer loyalty and advocacy by asking how likely customers are to recommend the product or service to others. It is a widely used proxy for customer sentiment and growth potential.
How to Use
What to Measure
- Responses on a 0–10 scale to the question: “How likely are you to recommend us?”
- Group respondents into Promoters (9–10), Passives (7–8), Detractors (0–6).
NPS = % Promoters − % Detractors
Example: 60% Promoters, 20% Detractors → NPS = 40.
Instrumentation Tips
- Run NPS quarterly or as a rolling in-product survey.
- Always capture a “Why?” follow-up for context.
- Segment results by cohort, region, and product.
Why It Matters
- Growth predictor: High NPS correlates with referrals and retention.
- Brand health metric: Simple, board-level KPI.
- Actionable insight: Detractor feedback highlights improvement areas.
Best Practices
- Pair NPS with follow-up qualitative analysis.
- Close the loop with detractors to improve satisfaction.
- Track NPS trends over time and against competitors.
Common Pitfalls
- Surveying biased samples (only active or happy customers).
- Treating NPS as a vanity metric without acting on feedback.
- Comparing across industries without context.
Signals of Success
- Rising NPS alongside falling detractor themes.
- Increased referrals or word-of-mouth sign-ups.
- Roadmap priorities influenced by NPS insights.
- [[Customer Satisfaction Score (CSAT)]]
- [[Customer Retention Rate]]
- [[Referral Rate]]