As you know, customer loyalty plays pivotal roles in a company’s growth. One widely adopted tool that has helped organizations gauge customer sentiment is the Net Promoter Score (NPS). It is a customer loyalty metric developed by Fred Raichheld, Bain & Company, and Satmetrix in 2003. The beauty of NPS, compared to other tools, lies in its simplicity. Reicheld argued that instead of complex customer satisfaction surveys and multiple metrics, a single number can tell you what you need to know about your customer loyalty and growth potential (hbr.org).

NPS is based on a straightforward question: “On a scale of 0 to 10, how likely is it that you would recommend our company/product/service to a friend or colleague?” Respondents are typically grouped into three categories based on their responses: Promoters (score 9-10) who are highly loyal and likely to recommend the business; Passives (score 7-8) who are satisfied but not enthusiastic, and might sway to other business; and Detractors who are dissatisfied and might even spread negative feedback about the business (techtarget.com).

The Net Promoter Score is determined by taking the percentage of promoters and subtracting the percentage of detractors. Businesses may introduce their own subjective perspectives into their NPS, leading to potential variations in their interpretation. Nonetheless, according to www.productplan.com, a useful guideline is as follows:
- 70 or higher: exceptional.
- 50 to 69: strong.
- 49 or less: requires enhancement.
- Below 0: needs immediate attention.

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