NPS stands for Net Promoter Score. It's a customer satisfaction benchmark that gauge the loyalty of a firm's customer relationships.
NPS is a typical benchmark companies measure to evaluate and improve customer loyalty. NPS is different from other benchmarks, such as customer satisfaction score or customer effort score, in that it measures a customer's overall sentiment about a brand, versus their perception of a singular interaction or purchase.
NPS Calculation
Survey your customers, asking them "On a scale of 0 to 10, how likely are you to recommend to a friend?" (NPS question from questions list)
Categorize respondents according to their score: Scores 0-6 are Detractors, scores 7-8 are Passives, and scores 9-10 are Promoters.
Disregarding the Passives, subtract the percentage of Detractor responses from the percentage of Promoter responses to determine your Net Promoter Score. This score can range from -100 to 100.
Responses to this question can be categorized into three groups:
Promoters: Customers who answer the question with 9-10
Passives: Customers who answer the question with 7-8
Detractors: Customers who answer the question with 0-6