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Net Promoter Score (NPS)
Definition
A customer loyalty metric that measures how likely consumers are to recommend a brand or product to others, based on a standardized survey question. NPS is used to assess brand advocacy and customer satisfaction.
How It's Calculated
% Promoters − % Detractors
Promoters: respondents scoring 9–10
Passives: respondents scoring 7–8 (not included in calculation)
Detractors: respondents scoring 0–6
Example
A beverage brand surveys its customers and finds that 50% are promoters and 20% are detractors, resulting in an NPS of +30, indicating strong customer advocacy.
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