Net Promoter Score (NPS)
A metric measuring customer loyalty and satisfaction based on likelihood to recommend a company to others.
In-Depth Explanation
Net Promoter Score (NPS) is a customer loyalty metric based on one question: "How likely are you to recommend us to a friend or colleague?" (0-10 scale). It's widely used for benchmarking customer satisfaction.
NPS calculation:
- Promoters (9-10): Loyal enthusiasts
- Passives (7-8): Satisfied but unenthusiastic
- Detractors (0-6): Unhappy customers
NPS = % Promoters - % Detractors Range: -100 to +100
NPS best practices:
- Follow up with open-ended "why"
- Close the loop on detractor feedback
- Track trends over time
- Segment by customer type
- Benchmark against industry
AI enhancements:
- Automated sentiment analysis of comments
- Predictive NPS from behaviour
- Theme extraction from feedback
- Churn correlation analysis
Business Context
NPS provides a simple, standardised measure of customer health that correlates with growth and retention.
How Clever Ops Uses This
We help Australian businesses implement and analyse NPS programs, using AI to extract insights from feedback comments.
Example Use Case
"Analysing NPS comments with AI to discover that shipping delays are the top driver of detractor scores, prioritising logistics improvements."
Frequently Asked Questions
Related Resources
Customer Lifetime Value (CLV)
The predicted total revenue a customer will generate throughout their entire rel...
Churn Prediction
Using AI and analytics to identify customers likely to stop using a product or s...
Sentiment Analysis
NLP technique that determines the emotional tone of text - positive, negative, o...
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