What is net promoter score (nps)?
A measure of customer loyalty based on one question: "How likely are you to recommend us?" Scores 0-6 are detractors, 7-8 are passives, 9-10 are promoters. NPS = % Promoters - % Detractors.
Formula
NPS = % Promoters (9-10) - % Detractors (0-6)
Why it matters
NPS predicts growth and word-of-mouth. Promoters drive referrals. Detractors churn and damage reputation. It's a simple proxy for product-market fit and customer satisfaction.
How to improve
Follow up with detractors to understand and fix issues. Ask promoters to refer. Focus on the specific moments that create promoters. Don't game the metric - improve the underlying experience.
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