Glossary

Net Promoter Score

Net promoter score is a customer-loyalty metric based on one question: how likely a member is to recommend a brand, rated on a scale. Responses sort into promoters, passives, and detractors, and the score is the share of promoters minus detractors. It gauges attitudinal loyalty and advocacy, complementing behavioral metrics like retention and frequency.

Net promoter score comes from asking members how likely they are to recommend a brand on a fixed scale, then grouping them into promoters, passives, and detractors. Subtracting the percentage of detractors from the percentage of promoters yields a single figure. It measures sentiment and willingness to advocate, a stated attitude, rather than an observed behavior like a purchase or a redemption.

Consider a program whose retention looks healthy but whose net promoter score is slipping. The behavioral data says members are staying, but the sentiment data warns that goodwill is eroding, perhaps after a devaluation or a service decline. That early attitudinal signal can precede a behavioral drop, giving the operator time to act before members actually leave.

For an enterprise operator, net promoter score adds the attitudinal dimension that behavioral metrics miss. It captures how members feel and whether they will advocate, which drives referral and word of mouth. Its limits are well known, since a single stated question is noisy and easy to game, so it is most useful read as a trend and alongside hard behavioral measures, not on its own.

Related

Keep reading