NPS Meaning: What is a Net Promoter Score?
Written by Hannah O’Toole
The Net Promoter Score (NPS) is a vital business metric used to measure customer loyalty, satisfaction, and the likelihood of customers recommending your business to others. Calculated by asking a single question (“How likely are you to recommend us?”), NPS categorizes respondents into Promoters, Passives, and Detractors. Tracking this score allows businesses to identify growth opportunities, resolve customer issues, and refine their marketing strategies using data-driven insights.
Is it possible to monitor customer loyalty and satisfaction? ABSOLUTELY!
And you should be monitoring it too. It’s not enough to ASSUME that your customers are happy. Knowing that your customers are satisfied, loyal, and would recommend your products or services to others is a key indicator that businesses are performing well and can also highlight opportunities for growth and expansion.
Your customer loyalty and satisfaction can be measured and monitored using a common business metric known as the Net Promoter Score (NPS).
In this article, we will share the importance of NPS, how to calculate it, and what you can do with the information you gain to enhance your business.
Let’s dive in.
What is the Net Promoter Score (NPS)?
Firstly, how does it work?
It is very simple. It is only one question that you put to your customers and record their answers.
“How likely are you to recommend us (0-10)?”
The number that they choose will determine which of these three categories they fall into:
1. Promoters (9-10)
Loyal, Enthusiastic, Advocates
They are deemed more likely to exhibit behaviours that generate value, such as buying more, returning to the brand over a long period and referring more people.
2. Passives (7-8)
Satisfied but unengaged
They are considered to be moderately satisfied. They might remain loyal to the brand, but also have the potential to switch allegiance to a competitor if the conditions are right.
3. Detractors (0-6)
Unhappy customers, Negativity
They are (usually) actively dissatisfied customers who have the potential to damage your brand reputation through negative reviews.
Calculating the Net Promoter Score
The Net Promoter score is calculated by:
NPS = % of promoters – % of detractors
It provides a single score between -100 and +100
For example
From 100 customers:
- 60 promotors (60%)
- 25 passives (25%)
- 15 detractors (15%)
NPS = 60% – 15% = +45%
Anything + is considered positive:
- 0-30 is good
- 30-70 isgreat
- 50+ is excellent
- 75+ is exceptional
So why is it essential for a business to measure and monitor its NPS?
Calculating your NPS is just the first step. It is what you do with the information after that is most important. Use it as an ongoing benchmark.
Your NPS is a great way to help you:
- Understand your customers
- Gather data
- Better data segmentation
- Identify trends
- Explore opportunities
- Identify any potential issues
- Quick problem-solving
- Overall, strengthen your business.
The data gathered from the Net Promoter Score (NPS) serves as a powerful, multi-faceted support for marketing efforts, providing invaluable insights that significantly enhance strategy across the board.
NPS feedback helps guide the overall marketing strategy by identifying key drivers of satisfaction and dissatisfaction. At the same time, high scores and positive comments can provide social proof, which can be leveraged in testimonials to build instant trust and credibility.
Beyond guiding campaigns and messaging, NPS enables detailed customer segmentation and personalisation, allowing marketing teams to create highly targeted campaigns, such as referral programs for Promoters and service recovery messaging for Detractors.
Did you know that We Do Marketing has a Net Promoter Score of 85?
Choosing We Do Marketing means partnering with marketing experts who genuinely value their clients and guarantee exceptional service, a commitment powerfully demonstrated by our outstanding Net Promoter Score (NPS). This high score is definitive proof that our clients are loyal advocates who consistently experience satisfaction, feel valued, and are likely to recommend our services. When you choose us, you are investing in a proven partnership where delivering a great, reliable, and results-driven experience is the standard, not the exception.
“Your service is always exemplary, cannot be faulted – you’re the best!”
Conclusion
Understanding the Net Promoter Score (NPS) is no longer optional. It is fundamental to business success. NPS is a powerful indicator of your customers’ loyalty, advocacy, and future value. By dedicating resources to measuring, analysing, and acting upon this data, you gain the precise insights needed to build a base of passionate Promoters.
Ready to leverage the true power of NPS to transform your marketing strategy?
Get in touch with We Do Marketing today to see how our customer-focused approach, backed by our own great NPS, can help you achieve scalable business momentum.
