What is the Net Promotor Score (NPS)?

The Net Promoter Score (NPS) is a widely used method for measuring customer satisfaction and loyalty. It gives companies a simple number that provides insight into how customers experience their brand and whether they would recommend it to others. But what exactly does NPS mean, and why is it so valuable for businesses?

The basics of the Net Promoter Score

The NPS is based on one simple question: “How likely are you to recommend us to a friend or colleague?” Customers respond with a score between 0 and 10, where:

• 0–6: These are the Detractors. They are dissatisfied or less enthusiastic and may even speak negatively about your brand.
• 7–8: These are the Passives. They are satisfied but not enthusiastic enough to actively promote your brand.
• 9–10: These are the Promoters. They are very loyal and actively recommend your brand to others.

The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The result is a score between -100 and +100.

Why is the Net Promoter Score important?

A high NPS means your customers are loyal and likely to promote your brand. This brings several key benefits:

• Word-of-mouth growth: Promoters attract new customers through positive recommendations.
• Customer retention: Loyal customers stay longer and spend more.
• Improvement opportunities: NPS feedback helps uncover pain points and drive meaningful improvements.

How to use the NPS effectively?

While the NPS is a powerful tool, it should never be treated as the end goal. It’s a starting point for action. Use the insights to:

1. Listen: Ask customers about the reason behind their score. What’s going well? What can be improved?
2. Improve: Address the structural issues that cause Detractors.
3. Celebrate: Recognize and reward teams that contribute to customer satisfaction.

The NPS is not sacred; it should be part of a broader customer research approach. Combine it with other metrics such as Customer Satisfaction (CSAT) or Customer Effort Score (CES) for a more complete view of the customer experience.

Case study: Coolblue

A great example of a company that uses NPS effectively is Coolblue. This e-commerce brand puts customer satisfaction at the heart of everything it does. By continuously listening to customer feedback, Coolblue keeps improving its service: from fast delivery and clear communication to excellent customer support.

The result? In 2023, the company achieved its highest Net Promoter Score ever: 71! (Source: Coolblue)

The Net Promoter Score is a simple yet powerful tool to measure customer loyalty and inspire improvement. But its true value lies in what you do with the feedback. Use it as a launchpad for action to build stronger, more loyal customer relationships. Because customer centricity starts with listening.