Net Promoter Score (NPS)

What is the Net Promoter Score (NPS)?

The Net Promoter Score (NPS) is a metric that measures how likely customers are to recommend a company, product, or service. It is considered one of the most well-known indicators of customer satisfaction and customer loyalty. The idea behind it is simple: those who actively recommend an offering are usually satisfied and loyal, and recommendations are one of the most valuable forms of customer acquisition.

The NPS was introduced in 2003 by management consultant Fred Reichheld and has since become the standard for measuring customer loyalty.

How is the NPS collected?

The survey is based on a single, central question:

"How likely is it that you would recommend us to a friend or colleague?"

The response is given on a scale from 0 (not at all likely) to 10 (extremely likely). Based on the rating, respondents are divided into three groups:

• Promoters (9 to 10): Enthusiastic, loyal customers who actively recommend the offering.
• Passives / Indifferents (7 to 8): Satisfied but not enthusiastic customers who could easily switch to a competitor.
• Detractors / Critics (0 to 6): Dissatisfied customers who could harm the reputation through negative word-of-mouth.

How is the NPS calculated?

The calculation is simple: the percentage of detractors is subtracted from the percentage of promoters. Passive customers are not directly included in the calculation.

NPS = Percentage of Promoters (in %) minus Percentage of Detractors (in %)

For example: If 60% of respondents are promoters, 30% are passive, and 10% are detractors, the NPS is 60 minus 10, resulting in 50.

Theoretically, the value can range from minus 100 (only critics) to plus 100 (only promoters). It is a pure number, not a percentage.

What is a good NPS?

There is no universally applicable benchmark, as values vary greatly depending on the industry. As a rough guideline: A positive NPS (above 0) means there are more supporters than critics. Values above 50 are considered very good, and values above 70 are outstanding. However, the development of your own NPS over time is more meaningful than comparing it with values from other industries.

Advantages and Limitations of the NPS

Advantages:

• Simplicity: A single question that is easy to understand and quick to answer, leading to high response rates.
• Comparability: The standardized method allows for comparisons over time.
• Early Warning System: A declining NPS can indicate problems before they affect revenue figures.

Limitations:

• Lack of Context: The pure number does not reveal why customers are satisfied or dissatisfied. An additional open-ended question ("What is the main reason for your rating?") is therefore highly recommended.
• Cultural Differences: Rating behavior varies by country, making international comparisons difficult.
• Not a Standalone Metric: The NPS should always be considered alongside other metrics, not in isolation.

NPS in Online Marketing

In the digital environment, the NPS can be easily collected, for example, through short surveys via email, after a purchase in an online shop, or via a pop-up window on the website. The results help systematically improve customer satisfaction. Particularly valuable is the targeted response to individual groups: Promoters can be engaged for recommendations, reviews, or testimonials, while direct contact with detractors helps resolve issues and prevent churn.

Conclusion

The Net Promoter Score is a simple and established metric for measuring customer loyalty and willingness to recommend. Its strength lies in its simplicity and comparability, while its weakness is the lack of context. The NPS is most effective when supplemented with an open-ended question and considered alongside other metrics. Those who regularly collect the NPS and respond specifically to feedback gain a valuable tool for continuously improving products and customer relationships.