What is a Net Promoter Score (NPS)? A simple metric to gauge customer loyalty

Developed by Fred Reichheld at Bain & Company, the Net Promoter Score (NPS) is a customer loyalty metric that measures customer satisfaction using an index that ranges from -100 to 100. Customers are asked one question – if they’d recommend the company to a friend – and then asked to respond using a scale from zero to 10, with zero being “not likely” and 10 being “extremely likely.” Customers are then organized into three categories as detractors, passives or promoters, based on their responses.

Detractors

Detractors are those who score between zero and six – they’re the most likely to have a negative perception of the brand or company and the least likely to spend money. They’re also more likely customers to clog up customer service lines, lodge complaints and spread negative word-of-mouth.

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