sK1303 export date: 28 Mar 2025

Definition

Measures the net difference between promoters and detractors, out of all customers that responded to the survey.

Variations

# Promoter Score
# NPS

Related KPIs

% Customer satisfaction with new products and services

Subordinated measures

Purpose

To monitor the level of customer loyalty and satisfaction

BSC perspective

Customer

Objective measured

Improve customer satisfaction

Data capture period

Data collection method

Customer Satisfaction Survey, Brand health trackers

Limitations

Being based on customer surveys, results can be altered by the respondents' subjectivity or incentives given by the company to stimulate responses.

Threshold examples

• Red: <50
• Yellow: 50-80
• Green: >80

Target setting notes

Thresholds are for exemplification purposes only. Net Promoter Score can greatly vary from one company to another depending on the industry or on the methodologies used to determine and benchmark a NPS. Some organizations consider that any NPS above 0 is a good score as it means that there are more promoters than detractors, however, the commonly agreed methodology states that only an NPS above 50 is considered satisfactory.

Overall notes

Net Promoter Score (NPS) is widely used by large organizations as a customer feedback tool, providing a clear and easily interpretable metric that is valuable for employees at all levels. For managers, NPS serves as a strategic input to guide decision-making and drive company performance.

To gain deeper insights into the motivations of both Promoters and Detractors, it is advisable to supplement the NPS question with open-ended follow-ups. These additional questions help uncover the reasons behind the given scores, enabling managers to implement targeted improvements. By either increasing the percentage of Promoters, reducing the proportion of Detractors, or ideally achieving both, organizations can effectively enhance their future NPS.

Additional resources

http://www.callcentrehelper.com/top-tips-for-improving-netpromoter-scores-nps-42754.htm
http://blogs.hbr.org/2011/05/how-philips-uses-net-promoter/

References

1.Rao, D. N. (2018), How net promoter score relates to organizational growth, available at: 
https://www.researchgate.net/publication/328305049_HOW_NET_PROMOTER_SCORE_RELATES_TO_ORGANIZATIONAL_GROWTH