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Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction. It is based on the question, “How likely are you to recommend our product/service to a friend or colleague?” Customers are asked to rate their likelihood on a scale of 0-10, with 0 being “not at all likely” and 10 being “extremely likely.”

The NPS is calculated by subtracting the percentage of detractors (customers who rated 0-6) from the percentage of promoters (customers who rated 9-10). Passives (customers who rated 7-8) are not included in the calculation.

The NPS is a key metric for businesses because it provides insight into customer loyalty and satisfaction. A high NPS indicates that customers are likely to recommend the product/service to others, which can lead to increased sales and revenue. A low NPS, on the other hand, indicates that customers are not satisfied and may be at risk of leaving for a competitor.

Businesses can use the NPS to identify areas for improvement and to track changes in customer satisfaction over time. By regularly measuring and analyzing the NPS, businesses can make data-driven decisions to improve customer loyalty and satisfaction.

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