Net Promoter Score (NPS)

KPI Name

Net Promoter Score (NPS)

Alternative Names

Customer Loyalty Score

KPI Description

Measures customer likelihood to recommend a business on a scale of -100 to 100.

Category

Customer Support

KPI Type

Quantitative, Lagging

Target Audience

Customer Success Managers, Business Owners, Marketing Teams

Formula

NPS = % Promoters – % Detractors

Calculation Example

If 60% are promoters and 20% are detractors, NPS = 60 – 20 = 40

Data Source

Customer surveys, feedback forms

Tracking Frequency

Quarterly, Annually

Optimal Value

A score above 50 is excellent, above 30 is good.

Minimum Acceptable Value

A negative NPS suggests a serious customer satisfaction issue.

Benchmark

Industry benchmarks: SaaS ~30-50, Retail ~20-40, Telecom ~10-30

Recommended Chart Type

Bar chart (to compare segments), Line chart (to track trends)

How It Appears in Reports

Displayed in customer experience reports to measure loyalty.

Why Is This KPI Important?

Indicates how likely customers are to promote a brand.

Typical Problems and Limitations

May not reflect actual customer behavior; promoters may not always refer new customers.

Actions for Poor Results

Improve customer experience, reward loyal customers, address detractor concerns.

Related KPIs

Customer Satisfaction Score (CSAT), Churn Rate, Customer Lifetime Value (CLV)

Real-Life Examples

A fintech company increased NPS from 25 to 55 by improving customer onboarding.

Most Common Mistakes

Focusing on increasing NPS without actively leveraging promoters for referrals.