What is NPS^® Survey? : Definition, Method and Examples

Net Promoter Score^® Survey (NPS^® Survey) is a well-known metric used for measuring customer satisfaction and loyalty. With an aim to predict the business growth and revitalize the customer experience, this survey involves asking customers a question: “On a scale ranging from 0 to 10, how likely are you to recommend our product/service to your friends or colleagues?” This is usually followed by another open-ended question: “Why did you give us that score?” This question comes with a dialog box for customers to write their feedback in. Leveraging data from this question empowers brands to improve their service, delivery, client relationships, etc. This plays a crucial role in increasing loyalty and boosting customer lifetime value. 

As the scale of an NPS^® survey ranges from 0 (Not at all likely) to 10 (Extremely likely), the respondents can be grouped as follows:

• Promoters: These are loyal enthusiasts of your brand who rate you either 9 or 10. These are the building blocks of your business as they keep buying from you and referring others too, fueling growth.
• Detractors: These are unhappy customers who give you a rating between 0-6. They are responsible for damaging your brand reputation and impeding your business growth due to negative word-of-mouth.
• Passives: These are the customers who are happy but not unenthusiastic enough to promote your brand. By giving a rating between 7 and 8, these customers can easily switch to competitors’ offerings if given a chance. 

To calculate Net Promoter Score^®, the percentage of detractors (who gave you a rating between 0-6) should be subtracted from the percentage of promoters (who gave you a rating of 9 or 10). While the Net Promoter Score^® can be interpreted as a value from -100 to 100; where the negative value describes that the brand has more detractors than promoters and positive in the opposite scenario i.e. when the brand has more promoters than detractors.