What is NPS?
Definition
NPS (Net Promoter Score) is a customer loyalty metric that measures how likely customers are to recommend a brand on a 0-10 scale.
How Is NPS Calculated?
NPS asks customers a single question: "On a scale of 0 to 10, how likely are you to recommend this brand to a friend?" Responses fall into three groups:
- Promoters (9-10) — loyal customers, active recommenders
- Passives (7-8) — satisfied but not loyal, may switch to competitors
- Detractors (0-6) — dissatisfied, a risk to the brand
Formula: NPS = % Promoters − % Detractors. The result is a number between -100 and +100. Generally: >0 good, >20 successful, >50 excellent, >70 best-in-class.
Measuring NPS with Zoho
Zoho products integrate NPS collection and action workflows:
- Zoho Survey — design single-question or extended NPS surveys
- Zoho Desk — automatic NPS survey at ticket closure
- Zoho CRM — NPS score and trend tracking on customer records
- Zoho Analytics — segment-based NPS dashboards
Why Is NPS Important?
- Customer loyalty prediction — repeat purchase and referral behavior
- Early churn risk detection — Detractors can be actively followed up
- Product/service improvement — reasons behind low scores form an action list
- Benchmarking — position against industry averages
The value of NPS is not in the number but in investigating what the number means — asking "why?" after low scores turns the metric into action.