Net Promoter Score (NPS)

Net Promoter Score, or NPS, is a simple but powerful tool to measure customer satisfaction and predict business growth. It works by asking customers a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Based on their responses, customers are categorized as Promoters (9-10 score), Passives (7-8 score), or Detractors (0-6 score).

In the context of business intelligence and data analytics, NPS is a crucial metric that helps businesses gauge the loyalty of their customer relationships. It’s like taking the pulse of how customers feel about your company, which can be a strong indicator of future sales and word-of-mouth promotion. A high NPS means more customers are happy and willing to spread the good word, while a low NPS signals the need for improvement.

This score helps businesses identify what’s working and what’s not in terms of customer satisfaction. They can then use this insight to refine their products, customer service, and other areas of their operations to not only keep customers coming back but also to turn them into vocal advocates for the brand. The simplicity of NPS makes it a favorite among businesses of all sizes for keeping track of customer sentiment and striving for exceptional service.