A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Net Promoter Score is used to measure customer satisfaction and loyalty by asking customers about their experience and how likely they are to recommend your product to others on a scale of 0-10.
In the NPS system, the customers are divided into 3 categories i.e. Promoters, Detractors, and Passives depending on how likely they are to recommend your products.
Promoters- They have a score of 9 and 10 and are considered to be the most loyal customers. They help in the overall growth of the company by increasing the referral flows and improving the brand image.
Detractors- They have a score of 0 to 6. They are the customers who had a bad experience or those who are not likely to stick around and make repeat purchases.
Passives- They have a score of 7 and 8. They are the ones who have made a few referrals and with the right strategies can become very close to being promoters.
You can calculate the Net Promoter Score by subtracting the percentage of Detractors from the percentage of Promoters. For example, if 60% of respondents were detractors and 40% were promoters, then your Net promoter Score will be 20.