Why Should You Measure Net Promoter Score?

Published on:
Tue Jul 25 2023
Customer Experience

Customer loyalty and satisfaction are crucial for achieving long-term success in today's world. One highly effective measure for assessing and enhancing these aspects is the Net Promoter Score (NPS).

The Net Promoter Score (NPS) serves as a metric employed by companies to gauge the level of customer loyalty and satisfaction towards their products or services.

The NPS metric is usually obtained through a straightforward survey question, asking customers to rate their likelihood of recommending the company/product/service to friends, family, or colleagues on a scale of 0 to 10.

Based on the responses, customers can be classified into three categories:-

  • Promoters (score 9-10): These are highly satisfied customers who are very likely to recommend the company. They are considered loyal customers.
  • Passives (score 7-8): These customers are satisfied but not enthusiastic. They may not actively promote the company but are also less likely to speak negatively about it.
  • Detractors (score 0-6): These are unhappy customers who are likely to share negative opinions about the company.

To calculate the Net Promoter Score, you need to subtract the percentage of detractors from the percentage of promoters:

NPS = % Promoters - % Detractors

Why should you measure Net Promoter Score?

Here are some reasons that define why you should measure Net Promoter Score and how it can benefit your organization.

1. Identifying key areas for improvement

Measuring NPS allows you to find out areas of improvement within your business. It allows valuable insights into specific pain points or strengths of your product or service. This feedback can help you prioritize areas for improvement and improve your customer experience, leading to higher satisfaction levels and increased customer loyalty.

2. Improve customer retention and reduce customer churn

Customer retention is important for long-term business success, and NPS is a powerful metric to improve it. By measuring NPS regularly, you can track changes in customer sentiment and take proactive action to address any concern. This allows you to retain more customers and reduce customer churn, which in turn leads to improved profitability and sustainable business growth.

3. Improve customer experience

The ultimate goal of measuring Net Promoter Score is to improve your customer experience. By identifying detractors and passives, you can reach out to them and understand their feedback.

This feedback can help you identify problem areas and then you can take corrective actions. By improving the experience for detractors and passives, you can turn them into promoters and improve your customer experience.

4. Benchmarking performance

NPS allows companies to compare their performance against other industry competitors. This benchmarking provides valuable context for improvement. Regularly analyzing NPS benchmarks enables businesses to identify trends and areas for improvement.

5. Customer-centric decision making

Measuring NPS encourages businesses to adopt a customer-centric approach. By putting the customer’s needs first, companies can build long-lasting relationships. Understanding and acting upon customer feedback shows a genuine commitment to customer satisfaction.

6. Brand advocacy and word-of-mouth marketing

Promoters are not only loyal customers but also enthusiastic brand advocates. Their word-of-mouth potential can lead to a positive impact on brand reputation and new customer acquisition. Encouraging customers to refer their friends and colleagues can be a powerful growth-driving method.

NPS data can be used to identify potential advocates, enabling you to nurture them to promote your brand further.


By consistently measuring Net Promoter Score and making improvements over time, you can build a successful, customer-focused business in the long run. With NPS, the customers come first, and their loyalty becomes the most important asset.

If you are looking to measure and optimize your Net Promoter Score (NPS), then Dropthought can certainly help!

Dropthought is a user-friendly, omnichannel, and real-time customer experience management platform. We empower companies in different verticals to create delightful experiences for customers across their journey. Get the detailed analysis and insights from data to exactly know what your customers think and what actions you need to take to delight them.

With a dedicated customer success team, we would ensure that you are optimizing your Customer Experience programs and strategies to create great experiences!
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