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Net Promoter Score: Measuring Customer Loyalty

Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a company, product, or service to others. Customers are asked to rate on a scale of 0 to 10 how likely they are to recommend the company or product, with 0 being 'not at all likely' and 10 being 'extremely likely'.

The responses are then divided into three groups:

Promoters (score 9-10): Loyal enthusiasts who will keep buying and refer others.

Passives (score 7-8): Satisfied, but unenthusiastic customers who are vulnerable to competitive offerings.

Detractors (score 0-6): Unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

The NPS is calculated by subtracting the percentage of customers who are Detractors from the percentage who are Promoters. NPS can be a powerful tool for understanding customer satisfaction and loyalty, and for benchmarking against competitors.

NPS provides valuable insights into customer satisfaction and helps organizations identify areas for improvement. By tracking NPS over time, businesses can gauge the impact of their efforts to enhance the customer experience and measure the success of their customer-centric strategies.

Net Promoter Score