A metric used to measure customer loyalty and satisfaction by assessing the likelihood that customers would recommend a company’s products or services to others. NPS is calculated based on responses to a single question: "On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?"
Customers are classified into three categories based on their responses: Promoters (scores of 9-10), who are enthusiastic and likely to drive positive word-of-mouth; Passives (scores of 7-8), who are satisfied but not enthusiastic; and Detractors (scores of 0-6), who are unhappy and could negatively impact the brand. NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. It provides valuable insights into overall customer satisfaction and helps companies identify areas for improvement.
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