The following post is part of a series that will help inform readers of the power that a company’s Net Promoter Score has on its long-term business goals.
What is NPS?
Net Promoter Score (NPS) is a simple but powerful tool that packs a serious punch. It’s a single, insightful metric that helps you measure customer loyalty with one powerful question:
“How likely are you to recommend our company to a friend or colleague?”
Customers answer on a scale from 0 to 10, and their responses fall into three categories:
- Promoters (9-10): These are your brand champions. They love what you do, tend to stick around, and aren’t shy about telling others. Promoters often buy more over time, and let’s be honest, they’re the kind of customers your team loves to interact with.
- Passives (7-8): These folks are content, but they’re not exactly shouting your name from the rooftops. They’re neutral—happy today but easily swayed by a competitor tomorrow. Their repurchase and referral rates can be as much as 50% lower than those of Promoters.
- Detractors (0-6): These are the unhappy customers. They’re at risk of jumping ship and not afraid to voice their frustrations—publicly. Negative word-of-mouth from Detractors has a real impact, affecting not just potential customers, but employee morale too.
The beauty of NPS lies in its simplicity. It’s easy to understand, quick to implement, and scalable for companies of any size or industry.
The importance of customer satisfaction
Before we go further down the NPS rabbit hole, let’s zoom out. Why should customer satisfaction and loyalty be on your radar in the first place?
You might think, “Sales are up—people must love us, right?”
Not so fast.
Today’s consumers are savvy, vocal, and always a few clicks away from your competition. One bad experience can can quickly turn into a scathing tweet or a one-star review that lingers on Google forever.
Customers now expect brands to anticipate their needs. They want personal attention, lightning-fast responses, and to feel like they’re part of something bigger. Companies that prioritize smooth, personalized experiences build stronger customer loyalty—and protect their brand reputation.
Bottom line: customer satisfaction is no longer a nice-to-have. It’s your competitive edge.
How NPS can help
Customer satisfaction isn’t static. It shifts, ebbs, and flows based on product updates, service interactions, and broader market trends. To stay ahead, you need a way to continuously measure, benchmark, and improve your customer experience.
That’s where NPS comes in.
It’s more than a number. NPS gives you a clear view of how your customers feel—and where their loyalty lies. With one simple question, you get real-time insight into your relationship with your audience. It becomes a pulse check, alerting you to changes in sentiment before they hit your bottom line.
And because it tracks over time, NPS data helps inform everything from high-level strategy to everyday decisions.
How to calculate NPS
Calculating NPS is straightforward. After collecting responses, use the following formula:
NPS = % of Promoters – % of Detractors
Say you survey 100 customers:
- 60 are Promoters
- 20 are Passives
- 20 are Detractors
Your NPS score? 60 – 20 = 40
Scores range from -100 (every customer is a Detractor) to +100 (everyone is a Promoter). If you’re above zero, you’ve got more fans than critics—a great place to start.
Benefits and proven results of tracking NPS
When you track NPS consistently, you’re doing more than checking a box—you’re gathering a goldmine of data. It helps you identify what’s working, fix what’s not, and prioritize initiatives that actually move the needle.
According to research from Satmetrix, businesses that take NPS seriously see some eye-popping results:
- Higher retention rates: Promoters stick around. They’re invested in your success.
- Increased cross-sell/upsell opportunities: Happy customers are more open to trying new products or services.
- Lower cost to serve: Satisfied customers ask fewer questions and file fewer complaints.
- Lower marketing costs: Positive word-of-mouth from Promoters generates organic growth, saving you money on paid ads.
When NPS is baked into your day-to-day processes, it becomes part of your company’s DNA. It fuels customer-centric growth and keeps you agile in a competitive market.
How to tell if your NPS is good or bad
So, what does a “good” score look like? That depends a bit on your industry—but here’s a general cheat sheet:
- Above 0: You’ve got more Promoters than Detractors—a solid start.
- Above 30: You’re on the right track with strong customer satisfaction.
- Above 50: Excellent—your customers love you.
- Above 70: World-class—your company is a customer loyalty leader.
The most important comparison, though, is with yourself. If your score this quarter is better than last quarter, you’re making progress—and that’s the goal.
How to improve your NPS
Tracking your NPS is step one. Acting on it? That’s where the magic happens. Here’s how to boost your score and build deeper connections with customers:
- Close the Loop: Don’t just gather feedback—follow up. Reach out to Detractors, fix their issues, and show them they’re heard. You might even turn them into Promoters.
- Empower Your Team: Make NPS data visible and accessible across departments. Encourage teams to own the customer experience.
- Refine Your Offering: Use feedback trends to spot product flaws, service gaps, or experience friction—and address them head-on.
- Celebrate Promoters: Give your loyal fans the VIP treatment. Whether it’s early access, exclusive content, or a simple thank-you, recognition goes a long way.
- Showcase Impact: When you make changes based on feedback, let your customers know. Transparency builds trust and shows you’re listening.
Improving NPS is a team sport. Everyone from customer support to product development plays a role in turning insights into impact.
Our commitment to NPS: Why NPS is at the heart of our customer strategy
At Alchemer, we don’t just talk about customer satisfaction—we live it.
NPS is woven into the fabric of how we work, from weekly team huddles to big-picture planning. It helps us understand where we shine and where we need to grow. Most importantly, it keeps us focused on what matters most: our customers.
We practice open-book management, sharing our NPS responses company-wide each week. That transparency empowers our teams to make smart, customer-first decisions. It’s a simple, powerful way to keep our finger on the pulse of satisfaction—and it’s made a real difference in our ability to delight and retain the people who matter most.
We believe that when you listen carefully, act thoughtfully, and lead with empathy, amazing things happen. NPS helps us do just that.
So if you’re not tracking NPS yet—or if you’re just going through the motions—it might be time for a rethink. Because in today’s market, loyalty isn’t given. It’s earned, nurtured, and measured.
And trust us: the results are worth it.
Want to see how NPS can revolutionize your customer feedback strategy? Click here to learn the inside scoop from our team.
Or, If you’re starting to question the value of your NPS surveys, this read is for you.
