Net Promoter Score (NPS)

Net promoter score (NPS) refers to a metric used to gauge the loyalty and satisfaction of a company's customers or partners, typically ranging from -100 to 100, based on their likelihood to recommend the company's products or services.

Example: Imagine a software company that provides accounting solutions to other businesses. They send out a survey asking their clients, who are primarily businesses themselves (B2B), how likely they are to recommend their software to a colleague or another business. Based on the responses, the company calculates its NPS, identifying how many promoters (enthusiastic customers likely to drive growth) versus detractors (unhappy customers likely to harm the brand through negative word-of-mouth) they have. This gauge helps them understand client satisfaction and loyalty within their partnerships and client network.

• Assessing customer loyalty and satisfaction provides critical feedback on product and service quality.
• NPS serves as a predictive indicator of business growth potential, drawing direct correlations between customer experience and future revenue.
• Improving NPS can lead to stronger relationships in B2B and partnership contexts, enhancing reputation, and fostering positive word-of-mouth.

Understanding net promoter score (NPS) helps businesses pinpoint areas for product and service improvement, strategize on enhancing customer experience, and ultimately drive sustainable business growth through nurtured customer relationships.