Net Promoter Score (NPS)
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Category:  
Strategic

Gauges customer loyalty and satisfaction by asking how likely customers are to recommend your brand.

What it Measures ?

How likely customers are to recommend your product or service.

Relevant StakeHolders 

CX Teams, Product Managers

In-depth Use Case / Real-world Example

Net Promoter Score is derived from customer responses to the question: “How likely are you to recommend our company/product to a colleague or peer?” Customers respond on a scale from 0 to 10 and are categorized as Promoters (9–10), Passives (7–8), or Detractors (0–6). NPS = % Promoters − % Detractors. For example, if 60% are Promoters, 25% are Passives, and 15% are Detractors, your NPS is 60 − 15 = 45. In the manufacturing sector, NPS is particularly valuable post-installation of equipment, delivery of large B2B orders, or after a long-term service engagement. A high NPS often correlates with strong customer retention, referrals, and cross-sell opportunities. Manufacturers can use this metric to identify satisfied clients who could serve as brand advocates for testimonials or case studies. Conversely, a lower score signals potential dissatisfaction — possibly due to after-sales service gaps, unclear documentation, or missed delivery timelines. Acting on NPS feedback can drive customer experience improvements, especially when looped into quality control, product design, and support processes. Tracking NPS trends over time, and segmenting by customer type, geography, or product line, provides a reliable compass for marketing and customer success teams.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Promoters - Detractors) / Total Survey Respondents * 100

Should Aim For
1
2
3
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