What is Net Promoter Score® (NPS)?

Net promoter score (NPS) measures customer perception of a brand and can predict revenue growth or decline. It is one of the primary ways companies assess loyalty and predict churn.

Bain and Company introduced the concept of net promoter score (NPS) in a Harvard Business Review article called "The One Number You Need to Grow" and it was quickly adopted by many leading Fortune 500 companies. It's simple to measure because it's based on one question - "How likely is it that you will recommend [company] to friends or family?" Customers answer the question on a scale, with 10 being "extremely likely" and 0 being "not at all likely”.

The score is calculated by subtracting the percentage of 0-6 responses from the percentage of 9-10 responses. For example, if 20% of customers answer 9 or 10 and 15% answer with a 0-6 response, the net promoter score (NPS) is 5. The closer the score approaches 100, the better. Conversely, as scores near -100, organizations need to act quickly to stop the bleeding.

Customers who complete the survey are segmented the following way, based on scores:

  • Promoters (9-10) - these customers typically buy more from a brand than an average customer and refer friends and family, thereby contributing to revenue growth.
  • Passives (7-8) - satisfied but indifferent. Passives might be one good competitive offer away from churning.
  • Detractors (0-6) - are negative about the brand and might be sharing that opinion with people they know.

Net promoter score (NPS) is a useful measurement but has some limitations. For example, it doesn't provide information on the "why" - why are Detractors disgruntled? Why are Promoters happy? To overcome this, businesses add other questions to the survey to supplement the net promoter score (NPS), including open-ended ones, to get a more comprehensive view.

Measuring is the first step but how companies use their net promoter score (NPS) is what ultimately matters. Successful organizations use it as an input to continuous improvement efforts.

How NICE can help

NICE CXone is the market leading contact center software in use by thousands of customers of all sizes around the world to help them consistently deliver exceptional customer experiences. Our customer survey tool allows organizations to calculate net promoter scores (NPS) as well as other key metrics. CXone is a cloud native, unified suite of applications designed to help a company holistically run its contact center operations. CXone includes:

Omnichannel Routing – routing and interaction management that empowers agents to positively and productively interact with customers in digital and voice channels. These solutions include an automatic call distributor (ACD), interactive voice response (IVR), interaction channel support and proactive outbound dialer.

Workforce Optimization – unlocks the potential of your team by inspiring employees' self-improvement, amplifying quality management efforts to enhance customer experience and reducing labor waste. These solutions include workforce management (WFM), quality management (QM), recording and performance management (PM).

Analytics – turns insights into results by making data relevant, easy to consume and actionable to drive measurable improvements and understand the omnichannel experience customers receive. These solutions include interaction analytics, customer surveys (great for collecting and analyzing net promoter scores), reporting and performance management.

CXone also includes pre-defined CRM integrations and UCaaS integrations with most leading solutions on the market. These integrations provide a holistic contact center software solution capable of elevating customer experiences for companies of all sizes.