NPS (Net Promoter Score) is derived from asking customers:
On a scale from 0-10, how likely are you to recommend this product to a friend?
Customers who answer:
0-6 are detractors
7-8 are passives
9-10 are promoters
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A product with 20% detractors and 40% promoters would have an NPS of 20. That's an average score. Products with an NPS above 50 are considered great, and anything above 80 is world-class. The scale runs from -100 (all detractors) to 100 (all promoters).
Teams that craft high-NPS products focus on delivering magical and exciting experiences across every touchpoint. Companies that do this consistently don’t just have customers; they have advocates who drive organic growth across their entire brand portfolio. Some of these companies include Tesla (90s), Costco and Amazon (70s), and Apple (60s).
High NPS reflects customer trust and love. When products add exceptional value to people’s lives, customers become walking advertisements, compelled to spread the word. This often foreshadows strong future growth: nothing beats a friend’s recommendation.
Since companies exist to serve customers, and NPS directly measures customer satisfaction, NPS is the most important metric.