What is Net Promoter Score?

CX DICTIONARY

Net Promoter Score, or NPS®, is a customer relationship metric used by many businesses to benchmark their customers satisfaction. The metric is based on the assumption that customers can be divided into three groups – Promoters, Detractors, and Passives – after responding to one simple question:

“On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or colleague?”

Promoters are the customers most likely to recommend you, with a score of 9 or 10. Detractors are not your biggest fans, with scores of 6 or lower. Passives, at 7 or 8, are satisfied but are also likely to switch to a competitor under the right circumstances.

Your NPS is determined by subtracting the percentage of customers who are Detractors from the percentage who are Promoters (Passives are not included in the calculation); thus, Net Promoter Scores range from -100 to 100.

Why use NPS?

Net Promoter Score is a simple metric that correlates to customer satisfaction and can show the impact of CX programs. It is a straightforward, easily explained indicator that is widely used across various industries. It allows you to benchmark your performance and work toward improving your customers’ overall satisfaction.

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How does Clarabridge help improve Net Promoter Scores?

With Clarabridge, you learn more than just whether or not your customers would recommend you – you find out why and what you can do about it.

Clarabridge allows you to combine quantifiable NPS data with other structured metrics, as well as all of your unstructured data. You can find out exactly what your Promoters like about you – and what your Detractors are complaining about. You can address the concerns of Detractors and Passives alike in order to improve their scores.

Clarabridge also gives you the evidence you need to take confident actions that improve customer satisfaction. These actions can then raise your Net Promoter Score.

Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

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