Capterra Glossary
Net Promoter Score (NPS)
Net promoter score (NPS) is a proprietary market research metric It determines the chances of customers recommending a business, service, or product to a colleague based on their replies to a single query: if they would advocate the company to a friend. Based on their indication of how likely they would be to recommend this business, on a scale of 0 to 10, they are divided into "detractors" with ratings below 6, "passives" with ratings around 7 to 8, and "promoters" with ratings over 9. The whole number is obtained by deducting the detractors from the promoters to form the NPS.
What Small and Midsize Businesses Need to Know About Net Promoter Score (NPS)
While most enterprise companies use NPS to measure customer satisfaction, there are an increasing number of SMBs using NPS as a performance metric. NPS can help SMBs understand the strengths and weaknesses of their business through quick, personal, and efficient interactions with their clients and in their marketing efforts.
Related Terms
- Big Data
- Attrition
- Software as a Service (SaaS)
- Furlough
- Intranet
- Business Intelligence (BI) Services
- Enterprise Resource Planning (ERP)
- Analytics and Business Intelligence (ABI)
- Security Orchestration, Automation and Response (SOAR)
- Identity and Access Management (IAM)
- Managed Service Provider (MSP)
- Advanced Clinical Research Information Systems (ACRIS)
- Business Analytics
- Augmented Reality (AR)
- Customer Relationship Management (CRM)
- Remote Work
- AMO (Application Management Outsourcing)
- Procurement
- Go-to-Market (GTM) Strategy
- MSO (Management Services Organization)