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Net Promoter Score (NPS)

What is Net Promoter Score?

Net Promoter Score (NPS) is a widely used customer feedback measure designed to provide an indication of customer loyalty and advocacy. It is based on a simple question:

 

How likely are you to recommend our organization, product or service to a friend or colleague?

 

Customers respond using a scale from 0 to 10. Based on their responses, they are grouped as Promoters, Passives or Detractors. The percentage of Detractors is then subtracted from the percentage of Promoters to calculate the Net Promoter Score.

 

Its simplicity makes NPS easy to communicate and track. However, the score itself is only part of the story.

NPS is best viewed as a signal—not a diagnosis.

 

A score may indicate that customers are delighted, dissatisfied or somewhere in between, but it does not necessarily explain why. That requires listening to customers, examining their feedback and connecting their experiences to the processes that created them.

Why Net Promoter Score Matters

Organizations often collect large amounts of customer information without having a simple way to monitor whether customer perceptions are improving or deteriorating. NPS provides a straightforward measure that can help organizations:

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  • Monitor customer sentiment over time

  • Identify changes in customer loyalty or advocacy

  • Compare experiences across customer segments

  • Detect areas requiring further investigation

  • Evaluate whether improvement efforts are being noticed by customers

  • Encourage greater attention to the Voice of the Customer (VOC)

  • A common language for evaluating the customer experience

 

The greatest value, however, rarely comes from knowing the number alone. The real opportunity begins when an organization asks why customers gave the scores they did—and what can be learned from their experiences.

Net Promoter Score (NPS) infographic showing the 0–10 customer rating scale, Detractors, Passives and Promoters, the NPS calculation, a +35 example, and a continuous improvement cycle for acting on customer feedback.

When to Use Net Promoter Score

Net Promoter Score can be useful whenever an organization wants a consistent way to monitor customer perceptions and willingness to recommend. Common applications include:

 

  • Periodic customer relationship surveys

  • Post-purchase or post-service feedback

  • Customer experience monitoring

  • Comparing customer segments or service channels

  • Tracking customer sentiment following process improvements

  • Identifying customers whose experiences may require follow-up

  • Supporting broader Voice of the Customer initiatives

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NPS can be measured at different points in the customer relationship. Relationship NPS examines the customer's broader perception of an organization and is often measured periodically. Transactional NPS is collected following a particular interaction, purchase or service experience.

How Net Promoter Score Works

Customers are typically asked to rate their likelihood of recommending an organization, product or service on a scale from 0 to 10. Responses are grouped into three categories:

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Promoters — Scores of 9 or 10: Customers who report a high likelihood of recommending the organization, product or service.

Passives — Scores of 7 or 8: Generally satisfied customers, but they are not included directly in the NPS calculation.

Detractors — Scores of 0 through 6: Customers with a relatively low likelihood of recommending the organization, product or service.

 

The Net Promoter Score (NPS) is calculated as: Percentage of Promoters − Percentage of Detractors. The resulting score can range from −100 to +100. For example:

 

  • 100 customers respond to an NPS survey:

  • 55 are Promoters (9-10)

  • 25 are Passives (7-8)

  • 20 are Detractors (0-6)

  • NPS = 55% − 20% = +35

 

The 25 Passives do not appear directly in the calculation, although their responses remain important when understanding the overall customer experience.

Key Concepts in Net Promoter Score

Understanding NPS requires more than knowing how to calculate the score.

 

  • Promoters (9-10): Organizations can learn from Promoters by identifying what aspects of the customer experience are working particularly well.

  • Passives (7-8):  Although they do not directly affect the NPS calculation, they should not be ignored. Their feedback can reveal opportunities to transform an acceptable experience into an exceptional one.

  • Detractors (0-6): Their feedback can help identify dissatisfaction, unmet expectations, service problems and process failures requiring investigation.

  • The Follow-Up Question: One of the most valuable additions to an NPS survey is also one of the simplest... “What is the primary reason for your score?” The numerical score tells you what the customer reported. Their explanation begins to tell you why.

  • Closing the Loop: Closing the loop means acknowledging feedback, investigating concerns where appropriate and demonstrating that customer input can lead to action.

  • Trends Matter: An isolated NPS value provides limited information without context. Tracking the measure consistently over time can reveal whether customer perceptions are improving, remaining stable or deteriorating.

  • Trend over Trophy: the goal should not simply be to achieve an impressive number, but to understand what changes in the number are telling you.

  • Interpret an NPS Score: It can be tempting to ask, “What is a good NPS?” Unfortunately, there is no universally meaningful answer. NPS results can be influenced by factors such as â€‹industry, customer expectations, geographic region, customer segmentproduct or service type, and survey timing methodology, sample size, and composition.

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For this reason, generic benchmarks should be treated cautiously. A score of +40, for example, may represent strong performance in one environment and an opportunity for improvement in another. Segmenting the data can provide greater insight. Instead of asking only, “Is our NPS good?”, consider asking, “Why is our NPS changing?” That question is much more likely to lead to meaningful improvement.

Common Pitfalls to Avoid

Net Promoter Score is simple to calculate, but it can easily be misused. Mistakes to avoid include:

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  • Chasing the Score: When achieving a particular NPS becomes the objective, employees may begin managing the metric rather than improving the customer experience.

  • Treating NPS as a Complete Voice of the Customer System: NPS provides one perspective on customer sentiment. It does not replace customer interviews, complaints, observations, surveys, operational data or other VOC methods.

  • Failing to Ask Why: A numerical score without accompanying feedback provides limited guidance about what should be improved.

  • Ignoring Passives: Passives do not enter directly into the calculation, but their experiences may contain valuable information about opportunities for improvement.

  • Comparing Scores Without Context: Differences in survey methodology, customer populations, timing and industry can make external comparisons misleading.

  • Drawing Conclusions from Small Samples: A small number of responses can cause substantial movement in the score and may not adequately represent the customer population.

  • Surveying Too Frequently: Repeated survey requests can create customer fatigue and reduce participation.

  • Incentivizing Employees Primarily on NPS: Strong incentives tied directly to the score can unintentionally encourage behaviours designed to influence survey results rather than improve customer experiences.

  • Assuming NPS Identifies Root Cause: NPS may reveal that a problem exists. It does not automatically explain what caused it. Further investigation is required.

Where Net Promoter Score Fits in Lean Six Sigma

Net Promoter Score fits naturally within Voice of the Customer (VOC) and can support several stages of the DMAIC improvement process.

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  • Define: NPS data can help identify customer groups experiencing dissatisfaction and provide an initial indication of where customer needs may not be adequately met. Customer comments can also contribute to identifying Critical-to-Quality requirements.

  • Measure: NPS can provide a baseline measure of customer sentiment before an improvement initiative begins.

  • Analyze: NPS results can be segmented and combined with customer comments and operational data to investigate possible drivers of customer experience.

  • Improve: Improvement teams can address the process problems identified through analysis rather than attempting to manipulate the NPS measure itself.

  • Control: Continued measurement can help determine whether improvements are sustained and whether changes in the process are reflected in customer perceptions over time.

 

NPS therefore serves best as one part of a larger improvement system. NPS can tell us where to look. Lean Six Sigma can help us understand what to fix.
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What Is Net Promoter Score in Simple Terms?

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Net Promoter Score (NPS) is a customer feedback measure based on how likely customers are to recommend an organization, product or service. It compares the percentage of enthusiastic supporters with the percentage of dissatisfied customers to produce a score ranging from −100 to +100.

Related Tools and Methods

Related Lean Six Sigma tools and concepts include:

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