Glossaries
NPS Net Promoter Score
What is NPS (Net Promoter Score) in Growth Hacking?
NPS (Net Promoter Score) is a customer loyalty metric used in growth hacking to measure and predict business growth. It's based on a single survey question asking customers how likely they are to recommend a product or service to others, using a scale from 0 to 10.
Synonyms: Customer Satisfaction Score, Customer Loyalty Metric, Recommendation Index, Customer Experience Score
How NPS Works in Growth Hacking
NPS divides customers into three categories based on their scores:
- Promoters (9-10): Loyal enthusiasts likely to fuel growth
- Passives (7-8): Satisfied but unenthusiastic customers
- Detractors (0-6): Unhappy customers who may impede growth
The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Why NPS is Important for Growth
- Customer Loyalty Indicator: NPS helps predict customer behavior and long-term growth.
- Simplicity: Easy to implement and understand across various teams.
- Benchmarking: Allows comparison with competitors and industry standards.
- Actionable Insights: Identifies areas for improvement to drive growth.
How to Use NPS in Your Growth Strategy
- Regularly survey customers to track NPS over time.
- Analyze feedback to identify patterns and improvement areas.
- Implement changes based on insights to enhance customer experience.
- Use NPS as a key metric in your growth dashboard.
- Combine NPS with other metrics for a comprehensive growth strategy.
Frequently Asked Questions
- What's a good NPS score?: Generally, a score above 0 is considered good, above 50 is excellent, and above 70 is world-class.
- How often should I measure NPS?: It depends on your business, but quarterly or bi-annually is common for most companies.
- Can NPS predict revenue growth?: While not perfect, studies have shown a correlation between high NPS and revenue growth in many industries.
- How can I improve my NPS?: Focus on addressing issues raised by Detractors, and enhancing experiences that create Promoters.