Glossary

The most comprehensive list of business process outsourcing related terms and definition.

Net Promoter Score (NPS)

Definition

The Net Promoter Score (NPS) measures customers in terms of their willingness to help promote or recommend a particular product. This may include other services as well. This gauges customer satisfaction as well as loyalty about a company’s product. The customers are given surveys that ask how they would rate a particular product or service to their friends or colleagues. They may choose between a scale of zero to ten. According to the ratings given by the respondents, they will be classified into three categories. These are the promoters, passives, and detractors.

The NPS is calculated by deducting the detractors’ percentage from the promoters percentage. The NPS is the generated result or score in between negative one hundred and one hundred. The detractors are those whose scores are six and below. They may not find the products and services to be useful may not buy from the brand again. Passives are those customers who gave a seven or an eight. They may be quite happy about the product, but they do not find it to be excellent. These are the people who may have the possibility of switching to another company or brand if the other company may produce something better. Finally, the promoters are those customers who have either a nine or a ten about the product or services offered. These people are fans and could be purchasing from the same company repeatedly.

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