Net Promoter Score, or NPS for short, is a metric used to measure your company's performance as perceived by your customers (the higher your NPS is, the more likely you are to be leading your market segment).
Customers are asked, 'How likely are you to recommend us to a friend?’ and will then answer by choosing a score between 0-10:
Based on the score given, your customers will then be placed into one of the following three categories:
Promoters (9 or 10): Promoters are seen as vital to future growth, as they are returning customers and will champion your brand via word-of-mouth marketing or promoting you through social media channels.
Passives (7 or 8): While Passives like your product or store, they may be swayed by incentives from competitors. They generally neither endorse or oppose your business or service.
Detractors (6 or below): Detractors are unsatisfied customers who may stifle growth through negative word-of-mouth or social media marketing.
Your NPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters!