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The definition of Net Promoter Score.
It is one of the key performance indicators in Customer Success metrics. It evaluates the customer willingness to promote a company, based on the customer experience. It connects customer satisfaction with the willingness to continue to buy a service or a product from the vendor, projecting the expected loyalty.
How it works.
Net Promoter Score is an index that goes from -100 to +100. In order to be calculated, customers are classified into 3 categories: Promoters, Passives and Detractors.
How is it calculated?
The question the clients are asked is "How likely are you to recommend the company to a friend or colleague?". The scale goes from 10 to 0. Anyone that gives a score below 6 is categorized as a detractor, between 7 and 8 a passive, and between 9 and 10 a promoter. Once you have all the answers, calculate the percentage of Promoters and subtract the percentage of Detractors. The final result is your NPS.
The data interpretation
The logic behind it is that a company that ranks the vendor at 7 or 8 believes they are getting what they paid for. The delivery is according to the expectations. Therefore, it is passive, and not willing to detract or promote that experience. Any mark below that means that the customer expectation was not satisfied and, at best, this customer will not bad mouth the vendor. On the other hand, a 9 or 10 is an above-expectation experience and those are more likely to be loyal and recommend the vendor's brand.
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