Glossaries
Net Promoter Score
What is Net Promoter Score (NPS)?
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend a product, service, or company to others on a scale of 0-10.
Synonyms: NPS, Customer Loyalty Metric, Recommendation Score, Customer Satisfaction Index
How Net Promoter Score (NPS) Works
Net Promoter Score is calculated by asking customers a single question: "On a scale of 0-10, how likely are you to recommend our product/service to a friend or colleague?" Based on their responses, customers are categorized 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 through negative word-of-mouth
The NPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Why Net Promoter Score is Important for User Research
NPS is a valuable tool in user research for several reasons:
- Simplicity: It's easy to implement and understand, making it accessible for both researchers and stakeholders.
- Benchmarking: NPS allows companies to compare their performance against competitors and industry standards.
- Predictive power: A high NPS often correlates with business growth and customer loyalty.
- Actionable insights: By following up with respondents, researchers can gather qualitative data to understand the reasons behind scores.
How to Use Net Promoter Score in User Research
- Implement NPS surveys at key touchpoints in the user journey.
- Analyze trends over time to track improvements or declines in customer loyalty.
- Segment NPS data by user demographics or product features to identify areas for improvement.
- Combine NPS with other user research methods for a more comprehensive understanding of user satisfaction.
Frequently Asked Questions
- What is a good Net Promoter Score?: Generally, an NPS above 0 is considered good, above 50 is excellent, and above 70 is world-class. However, this can vary by industry.
- How often should we measure NPS?: It depends on your business, but many companies measure NPS quarterly or bi-annually to track trends over time.
- Can NPS replace other user research methods?: No, NPS should be used in conjunction with other research methods for a comprehensive understanding of user experience.
- How can we improve our Net Promoter Score?: Focus on addressing the concerns of Detractors, converting Passives to Promoters, and maintaining the satisfaction of existing Promoters through continuous improvement of your product or service.
