NPS

Definition

NPS (Net Promoter Score) is a loyalty index built on one question: “how likely are you to recommend the product, from 0 to 10”. Respondents scoring 9–10 are promoters, 7–8 are passives, and 0–6 are detractors. NPS is the difference between the promoter and detractor shares, ranging from −100 to +100.

How to compute

$\text{NPS} = \text{share of promoters} - \text{share of detractors}$; passives do not enter the formula but do enter the percentage base. Compute it per survey wave, always reporting the sample size and the response rate. Keep waves identical in wording and channel so they are comparable over time.

Pitfalls

NPS is not an interval scale: a 5-point move between waves can be sampling noise. A low response rate biases the result, since the extremes respond. NPS does not guarantee growth: loyalty and revenue are linked only indirectly. A single question does not explain causes; drivers need follow-up questions.

Related

• Retention
• ARPU
• Churn