What is NPS (Net Promoter Score)
Also known as: Net Promoter Score, NPS survey
Net Promoter Score (NPS) is a loyalty metric based on a single question: from 0 to 10, how likely are you to recommend the company to a friend or colleague? Those who answer 9 or 10 are promoters, 7 or 8 are passives, and 0 to 6 are detractors. NPS is the percentage of promoters minus the percentage of detractors. It was created by Fred Reichheld of Bain & Company and popularized in a 2003 article.
NPS = % promoters (scores 9 and 10) − % detractors (scores 0 to 6)
Passives (7 and 8) count toward total responses but are left out of the subtraction. The result ranges from −100 to +100 and is usually written as a whole number, without a percent sign.
A gym receives 200 survey responses: 110 scores of 9 or 10, 50 scores of 7 or 8 and 40 scores from 0 to 6. Promoters are 55% and detractors 20%. NPS is 55 minus 20, or 35.
The number alone says little. Reading the open question, the gym finds that half of the detractors complain about the same thing: lines for equipment at peak hours. That finding, not the 35, becomes the action plan.
Promoters, passives and detractors
| Scores | What it usually means | |
|---|---|---|
| Promoters | 9 and 10 | Satisfied customers who tend to return and refer |
| Passives | 7 and 8 | Satisfied but unenthusiastic; they switch easily |
| Detractors | 0 to 6 | Unhappy customers who may leave and speak badly |
How to run the survey
- Use the standard question and add an open follow up: why?
- Ask at the right moment, after a delivery or some time of use.
- Keep the survey short; every extra question lowers responses.
- Repeat it regularly to compare the company with itself.
- Close the loop: respond to detractors and thank promoters.
What to do with the result
NPS is valuable less for the score and more for the open answers. Group the reasons, see which repeat and tackle the most frequent ones among detractors. Promoters are good sources of testimonials, public reviews and referrals; it is worth asking.
Also track who actually bought again and who referred someone. A high score that does not turn into repeat purchases or referrals deserves suspicion.
The criticism of NPS
NPS is widely used in business and widely debated in academia. Researchers question whether it predicts growth better than other loyalty questions, such as overall satisfaction or intention to buy again, and point out that on its own it does not say what to improve.
Reichheld himself criticized survey overuse, which wears customers out, and recommended de linking NPS from employee compensation, because that makes staff care more about the score than about the customer.
Compare with care
NPS varies widely across industries, countries and survey methods. Comparing your number with a company in another industry, or with an average found online, leads to wrong conclusions. The most useful comparison is with your own company, over time, with the same question and the same survey moment.
Frequently asked questions
What is NPS?
A loyalty metric based on a 0 to 10 question about how likely customers are to recommend the company. The result is the percentage of promoters minus the percentage of detractors.
How do you calculate NPS?
Subtract the percentage of detractors (scores 0 to 6) from the percentage of promoters (scores 9 and 10). With 55% promoters and 20% detractors, NPS is 35.
What is a good NPS?
It depends on the industry and survey method. Any positive number means more promoters than detractors, but the most useful comparison is with your own company over time.
Who created NPS?
Fred Reichheld, a Bain & Company consultant, who popularized the metric in The One Number You Need to Grow, published in Harvard Business Review in 2003.
Does NPS have limitations?
Yes. Researchers question whether it predicts growth better than other loyalty questions, and it does not say on its own what to improve. The open question is what gives the score context.
Related terms
- ChurnChurn is the rate of customers who stop buying or cancel during a period, relative to those the business had...
- LTVLTV (lifetime value, also called CLV) is the value a customer generates for a business over the entire time...
- Customer journeyThe customer journey is the path a person takes from the first sign of a need to the purchase, and beyond it...
- KPIA KPI (key performance indicator) is a number chosen to show whether a business is reaching a specific goal...
Rodrigo Fávaro
Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.
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