NPS

An abbreviation for Net Promoter Score, a metric for measuring customer loyalty. Respondents answer the single question "How likely are you to recommend this service to a friend or colleague?" on a scale of 0-10, and the score is calculated as the difference between the percentage of promoters and detractors.

How to Calculate and Interpret NPS

NPS classifies respondents into three groups. Those who rate 9-10 are "Promoters," 7-8 are "Passives," and 0-6 are "Detractors." NPS = percentage of Promoters (%) - percentage of Detractors (%), yielding a score ranging from -100 to +100.

Score interpretation varies by industry, but generally a score above 0 is considered good, above 30 is excellent, and above 50 is outstanding. Apple and Amazon record NPS scores in the 60-70 range, demonstrating high customer loyalty. The average for Japanese companies tends to be around -20 to 0, which is lower compared to global companies.

A Practical Guide to Leveraging NPS

The true value of NPS lies not in the score itself but in the qualitative feedback behind it. The golden rule for NPS surveys is to include a free-text field asking "please tell us the reason" alongside the numerical response. Detractor responses reveal hints for service improvement, while Promoter responses highlight the service's strengths.

Customers with high NPS scores are more likely to actually bring in new customers through word-of-mouth. By presenting invitation codes or referral programs to Promoters, you can convert their advocacy into referral actions with high probability. Regularly measuring NPS and tracking score changes before and after initiatives enables a continuous improvement cycle for customer experience.

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