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Innov8 Digital Solutions Inc. NPS® Metrics
What is NPS and How is Calculate
Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement taken from asking customers one simple question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Based on their responses, customers are categorized into one of three groups:
1. Promoters (score 90-100): These are loyal enthusiasts who will keep buying and refer others, fueling growth.
2. Passives (score 70-80): They are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
3. Detractors (score 0-60): 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 of customers who are Promoters. The score can range from -100 (if every customer is a Detractor) to 100 (if every customer is a Promoter). A positive NPS (>0) is generally seen as good, and an NPS of +50 is excellent.
NPS is widely used across industries as a measure of customer satisfaction and loyalty, providing a clear and simple metric that can be compared over time and against competitors. It is often used to gauge the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
