Net Promoter Score (NPS) is a single-question measure of customer loyalty — how likely a customer is, on a 0–10 scale, to recommend you to someone else.
NPS comes from one question: ‘How likely are you to recommend us?’ on a 0–10 scale. Respondents are grouped into promoters (9–10), passives (7–8) and detractors (0–6). It’s popular because it’s simple, trackable over time and correlates with word-of-mouth growth.
NPS = % promoters − % detractors, giving a score from −100 to +100. A positive score means more promoters than detractors; anything above roughly +30 is generally considered good, though benchmarks vary by industry.
Loyal customers cost nothing to re-acquire and refer others, so NPS is a leading indicator of retention and lifetime value. Track it over time rather than obsessing over the absolute number — the trend, and the reasons behind detractor scores, are where the value is.
NPS ranges from -100 to +100. A positive score means you have more promoters than detractors; above roughly +30 is generally considered good and above +70 excellent, though benchmarks vary widely by industry.
Subtract the percentage of detractors (those scoring 0-6) from the percentage of promoters (9-10). Passives (7-8) are excluded from the subtraction but count in the total. The result is your Net Promoter Score.
Promoters refer others and stay longer, so NPS is a leading indicator of retention, word-of-mouth and lifetime value. The reasons behind low scores are often more actionable than the number itself.
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