What is a Net Promoter Score?

Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction based on the likelihood of customers to recommend a company’s products or services to others. It is calculated by asking customers a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?”

Why is a Net Promoter Score Important?

NPS is important because it provides a simple yet powerful way to gauge customer sentiment and loyalty. It helps companies identify promoters (loyal customers who are likely to recommend) and detractors (unhappy customers who may spread negative feedback). By understanding NPS, businesses can focus on improving customer experience, increasing customer retention, and ultimately driving growth through positive word-of-mouth referrals. 

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What are the Benefits of a Net Promoter Score?

Simple and easy to use, Net Promoter Score remains a reliable metric for measuring customer loyalty, categorizing customers into promoters and detractors based on their responses. Finding who your promoters and detractors are can provide valuable insight into how customer experience is impacting your bottom line. For example, a study conducted by Bain & Company found that Dell once had 15% NPS detractors, accounting for $68 million of lost revenue. The study estimated that by converting half of the detractors into promoters, Dell “would add more than $160 million annually to the bottom line.”

How Precisely Can Help

The key to a high NPS is happy customers. Happy customers happen when you engage with customers when, where and how they desire, using personalized data-driven insights, businesses are creating the game-changing experiences that customers demand. EngageOne™ solutions from Precisely provide a leading range of products which, backed by our services and know-how, enables your enterprise to make better decisions that can grow your Net Promoter Score (NPS) and improve overall customer experience.