What is Net Promoter Score (NPS)? Definition & Examples

What is Net Promoter Score (NPS)?

Understanding Net Promoter Score (NPS) in E-commerce

Quick Definition

Net Promoter Score (NPS) is a customer loyalty metric measuring the likelihood of customers recommending a business to others. Calculated by surveying customers on a 0-10 scale, NPS categorizes respondents as Promoters (9-10), Passives (7-8), and Detractors (0-6). The score is determined by subtracting the percentage of Detractors from Promoters, providing a clear indicator of customer satisfaction and potential growth.

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Understanding Net Promoter Score (NPS)

NPS Calculation Method

NPS = % Promoters - % Detractors

Example Calculation:

Promoters (9-10): 60%

Detractors (0-6): 20%

NPS = 60% - 20% = 40

Customer Segments in NPS

Promoters (9-10)

Loyal enthusiasts who will actively recommend your brand

Passives (7-8)

Satisfied but not excited customers who could switch to competitors

Detractors (0-6)

Unhappy customers who might spread negative word-of-mouth

NPS Benchmarks by Industry

Industry	Average NPS	Top Performers
E-commerce	35-45	60+
SaaS	25-35	50+
Retail	20-30	45+

Strategies to Improve NPS

1. Personalized Customer Experience

Use tools like Growth Suite to create targeted, personalized interactions that increase customer satisfaction.

2. Rapid Response to Feedback

Implement a system to quickly address customer concerns and demonstrate commitment to their experience.

3. Continuous Improvement

Regularly analyze NPS data to identify and resolve systemic issues in your customer journey.

NPS: More Than Just a Number

NPS is a powerful indicator of business health, reflecting customer loyalty, potential growth, and overall satisfaction. By consistently measuring and improving your score, you create a virtuous cycle of customer advocacy and business success.