{"id":6199,"date":"2015-11-18T18:56:54","date_gmt":"2015-11-18T18:56:54","guid":{"rendered":"https:\/\/www.gosquared.com\/blog\/?p=6199"},"modified":"2025-07-15T13:05:36","modified_gmt":"2025-07-15T13:05:36","slug":"the-definitive-guide-to-measuring-nps","status":"publish","type":"post","link":"https:\/\/www.gosquared.com\/blog\/the-definitive-guide-to-measuring-nps","title":{"rendered":"What Is Net Promoter Score? (NPS)"},"content":{"rendered":"

Did you know that it costs five times more to acquire a new customer on average versus retain an existing customer? <\/span><\/p>\n

Furthermore, selling to an existing customer has been found to have a typical success rate of 60%-70%, versus just 5%-20% for new customers. <\/span><\/p>\n

So how do you retain your existing customers to ensure such success is more likely? The key lies in identifying your Net Promoter Score, which is also known as NPS for short. That’s because doing so will give you an honest answer about how your customers feel about your current service offerings, along with what can be improved. <\/span><\/p>\n

For any business that is looking to supercharge their marketing efforts by ensuring their products, services or general offerings are truly aligned with their customers, conducting an NPS survey is a must. <\/span><\/p>\n

New to all things Net Promoter Scores? Here is our ultimate guide to share everything you need to know on how to conduct NPS surveys and better still, how to extract the maximum value out of your efforts. <\/span><\/p>\n

What Is NPS?<\/strong><\/h2>\n

NPS stands for Net Promoter Score and is a type of measurement system that’s used for improving company performance. It aims to measure customer sentiment towards a company and can be used as a leading indicator of growth. <\/span><\/p>\n

The information gathered from an NPS survey is designed to increase the number of customers who would actively recommend the company, by ascertaining any current areas of satisfaction and dissatisfaction. <\/span><\/p>\n

Meaningful changes can then be made where necessary to improve on any weak spots within the company, based on honest customer feedback.<\/span>
\n<\/span><\/p>\n

How Does NPS Work?<\/strong><\/h2>\n

\"How<\/a><\/p>\n

Net Promoter Score runs on a scale of -100 to 100, and is determined via an NPS survey which the customer completes at a specific interval in the CX journey. The higher the number, the more willing a customer is to promote a company\u2019s products or services to others. The number can also be used to gauge the general satisfaction of customers as a whole, depending on the types of scores and accompanying feedback that are generated. <\/span><\/p>\n

So why are Net Promoter Scores used? It is well known that word of mouth recommendations, coming from people you trust, are still the most valuable form of marketing. Customers from referrals are both more profitable and more loyal. We trust our friends and colleagues to give us good advice and we want to act on it.<\/span><\/p>\n

Therefore, Net Promoter Scores help to get inside the minds of your customers, to see whether your company falls into this realm, or whether more work is needed to bridge the gap.<\/span><\/p>\n

Read more:<\/strong> How to collect NPS customer feedback and share it with your team<\/a><\/p>\n

NPS Question Examples<\/strong><\/h3>\n

Let\u2019s get specific here. <\/span>As a business, the two most important question you can ask your customers are:
\n<\/span><\/p>\n

How likely are you to recommend us to a friend or colleague?<\/strong><\/p>\n

The answer is on a scale of 0 \u2013 10 where 0 is ‘I would not recommend’, and 10 is \u2018extremely likely\u2019 that the customer would recommend you. <\/span><\/p>\n

These types of questions can be followed by the second most important question which acts to gain further insight from the first question:<\/span><\/p>\n

What is the most important reason for your score?<\/strong><\/p>\n

Naturally, some of the reasons may relate to the following:<\/p>\n