NPS measures customer loyalty by asking one simple question: “How likely are you to recommend us to a friend or colleague?” Responses are rated 0-10.
Promoters (9-10): Loyal fans who will promote your business
Passives (7-8): Satisfied but may switch to competitors
Detractors (0-6): Unhappy customers who may harm your reputation
NPS = % Promoters - % Detractors
Example: 60% Promoters, 10% Detractors = NPS of 50
Survey regularly (quarterly or bi-annually), follow up with respondents to understand reasons, close the loop with Detractors to resolve issues, identify Promoters for case studies and referrals, track NPS trends over time, segment NPS by customer type or product, and tie NPS to business outcomes (retention, referrals).
Always include an open-ended “Why?” question to gather qualitative feedback. This context is often more valuable than the score itself for driving improvements.