Net Promoter Score
Definition
A customer loyalty metric from -100 to +100 measuring willingness to recommend, calculated by subtracting detractors from promoters.
Why It Matters
Key Takeaways
- 1.Net Promoter Score is a foundational concept for modern business strategy
- 2.Understanding this helps teams make better technology and growth decisions
- 3.Practical application requires combining theory with data-driven experimentation
Real-World Examples
Applied net promoter score to achieve significant competitive advantages in their markets.
Growth Relevance
Net Promoter Score directly impacts growth by influencing how companies acquire, activate, and retain customers in an increasingly competitive landscape.
Ehsan's Insight
NPS is the most widely used and most widely abused customer metric. The measurement is simple: "How likely are you to recommend this product?" (0-10). The problem: NPS surveys are typically sent to all customers, including those who barely use the product. A user who logged in once and rated 6 pulls down the score but tells you nothing about product quality. The fix: segment NPS by usage tier. NPS from daily active users reveals product satisfaction. NPS from inactive users reveals onboarding failure. These are different problems requiring different solutions. One company had an overall NPS of 32. Among daily active users, NPS was 71. Among users who logged in fewer than 3 times, NPS was -12. They did not have a product problem. They had an activation problem.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO
Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations · Ex-Microsoft · CMO at FirstWave (ASX:FCT) · Forbes Communications Council