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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

Category

business

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