What is Net Promoter Score (NPS)?

Net Promoter Score, as explained by DJS Research Ltd.

The Net Promoter Score (commonly NPS, N.P.S) was developed by Fred Reichheld, Bain & Company, and Satmetrix and remains a trademark of the developers. The score is obtained by asking customers the question "How likely is it that you would recommend our company to a friend or colleague?” the answer is given on a 0 to 10 rating scale. Based on their responses, respondents are grouped as Promoters (9-10 rating), Passives (7-8), and Detractors (0-6). The percentage of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter score – a score of 75% or more is considered to be relatively high. Companies often follow this question by allowing the respondent to elaborate on their opinion in an open-ended question.  These reasons can then be used by both management and frontline employees to inform future action.

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