Net Promoter Score (NPS) is a widely recognised metric that measures customer loyalty and satisfaction by asking a single, straightforward question: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?" Based on their responses, customers are categorised into Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6). The Net Promoter Score is then calculated by subtracting the percentage of Detractors from the percentage of Promoters, offering a clear indicator of overall customer sentiment and loyalty.
For Product Managers, Net Promoter Score is invaluable for gauging the health of customer relationships, understanding customer sentiment, and identifying areas for improvement. It serves as a proxy for evaluating the customer's experience and the likelihood of sustainable growth through word-of-mouth. A high Net Promoter Score suggests that customers are happy and likely to fuel growth through referrals, while a low Net Promoter Score indicates areas where the product or service may not be meeting customer expectations, signalling a need for corrective action.
Optimising Net Promoter Score involves a deep dive into customer feedback to understand the drivers of satisfaction and dissatisfaction. It requires continuous iteration on product features, customer service practices, and user experience enhancements. For Product Managers, focusing on increasing Net Promoter Score is synonymous with committing to continuous improvement and customer-centricity, ultimately driving loyalty, retention, and organic growth.