Net Promoter Score (NPS)

Beginner 📣 Marketing / Advertising

Definition

A metric based on asking customers 'how likely are you to recommend us' on a scale of 0-10, a measure so simple it's kind of genius and kind of useless.

Example Usage

Our NPS was 42, which placed us in the 'acceptable' range (we interpreted that as 'room for improvement').

Origin

Created by Fred Reichheld in 2003; arguably the most simple and most debated customer metric ever

Fun Fact

NPS is so widely used that it's become almost meaningless—companies obsess over 1-point improvements while ignoring the fact that customers still aren't buying.

Source: Customer Satisfaction and NPS Standards

Related Terms

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