Net Promoter Score (NPS)
Definition
At its core, Net Promoter Score is a measure of customer loyalty derived from a single survey question: how likely are you to recommend this company to a friend or colleague. Responses are given on a 0-10 scale and segmented into three groups: promoters who score 9-10, passives who score 7-8, and detractors who score 0-6. NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The result is a number ranging from -100 to 100 that provides a high-level read on overall customer sentiment.
Example
A SaaS company surveys customers quarterly. Their overall NPS looks acceptable, but when they break it down by customer segment and support interaction history, a different picture emerges. Customers who had a support issue resolved quickly and completely in one contact are significantly more likely to be promoters. Customers who had to contact support multiple times, experienced transfers, or felt their issue was handled inconsistently are far more likely to be detractors. This analysis helps the company connect operational metrics to loyalty outcomes and prioritize first contact resolution as a retention driver.
Why It Matters
This shows up as a relationship-level signal that goes beyond individual interaction satisfaction. NPS measures how customers feel about the brand overall, which is influenced by many experiences over time, including support interactions. For customer operations teams, it provides a bridge between day-to-day service performance and business outcomes like retention, expansion, and word-of-mouth. When analyzed alongside operational data, NPS helps teams understand how service quality affects the long-term customer relationship rather than just the most recent contact.