The Net Promoter Score (NPS) is a number used to indicate customer loyalty and satisfaction.
The NPS is created by asking customers how likely it is that they will buy a product, service or company to others on a scale of 0 to 10.
Respondents are divided into three categories: promoters (score 9-10), passives (score 7-8) and detractors (score 0-6). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, creating a net score. Positive scores indicate satisfied customers and potential growth, while negative scores indicate areas for improvement for companies to improve customer satisfaction to increase.