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Net Promotor Score (NPS)

The Net Promoter Score (NPS) gauges customer satisfaction and loyalty. NPS is based on a simple question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” An NPS score is reported with a number ranging from -100 to +100, where a higher score is desirable. The simplicity of the NPS makes it easy for companies to track changes in satisfaction over time and identify areas for improvement. While NPS itself is a numerical score, the positive word-of-mouth generated means customers are likely to continue purchasing the products while also recommending them to others. In the hospitality industry, for example, hotels with high NPS scores benefit from repeat business, customer loyalty, enhanced reputation and long-term profitability.