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Definition

What is Net Promoter Score (NPS)?

A customer loyalty metric measuring how likely customers are to recommend your business to others.

Net Promoter Score (NPS) is calculated by asking customers one question: 'How likely are you to recommend us to a friend or colleague?' on a 0-10 scale. Responses are grouped into Promoters (9-10), Passives (7-8), and Detractors (0-6). NPS = % Promoters minus % Detractors, yielding a score from -100 to +100. It's the most widely used customer loyalty benchmark across industries.

Why Net Promoter Score (NPS) Matters for Local Businesses

NPS predicts growth better than satisfaction surveys because it measures willingness to stake personal reputation on a recommendation. For local businesses, a high NPS correlates directly with word-of-mouth referrals and organic review generation. Tracking NPS over time reveals whether your customer experience is improving or degrading.

Related Terms

Customer Satisfaction Score (CSAT)
Customer Feedback
Customer Retention
Review Generation

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