What is the Net Promoter Score (NPS)?

The Net Promoter Score (or NPS) is a standard measure of customer satisfaction.  This is how you test for NPS within your paid customer install base.

Show the product concept, then ask this question on a 10 point scale (1 = not at all likely, 10 = very likely):

  • “How likely is it that you would recommend [your product] to a friend [or family, or colleague etc]?”

Now you need to categorize the responses:

  • Promoters = 9, 10 – your loyal enthusiasts
  • Passives = 7, 8 – satisfied but unenthusiastic
  • Detractors = 0-6 – unhappy, can damage brand by word of mouth

Then you can calculate the Net Promoter Score as follows: (NPS)

  • NPS = % Promoters - %Detractors

As a matter of reference, in 2013, Apple laptop (the best scoring computer company) scored an NPS of 76%; Kaiser (best health insurance company) scored an NPS of 36%.  It is generally a good idea to look up the norms of NPS for your industry because NPS is not very transferable across industries (after all it will always be more pleasurable to use an iPhone or MacBookAir than to buy insurance!)

Read more here: http://www.netpromoter.com/why-net-promoter/know/

Was this article helpful?
0 out of 0 found this helpful

      This website and all posts and content are intended for educational purposes only and for no other purposes. This website does not and is not intended to provide legal, financial or tax related advice. Although we take great care to make sure that all of our information is accurate and useful for it intended educational purposes, if you have a specific issue for which you need actionable advice, please come to the Martin Trust Center in person to speak to one of our Entrepreneurs in Residence (EIR) or consult a licensed attorney or other professional. Despite the backgrounds and qualifications of our staff, mentors, lecturers, authors, EIRs and speakers no attorney-client, advisor, or other confidential/privileged relationship exists or will be formed between you and the Martin Trust Center or the Massachusetts Institute of Technology. Under no circumstances should any content be relied upon in making any decisions that could have any financial or legal impact(s).
Have more questions? Submit a request


Powered by Zendesk