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The power of Net Promoter Score (NPS)

NPS is a widely adopted metric used to gauge the loyalty of a firm’s customer relationships. Developed by Fred Reichheld, Bain & Company, and Satmetrix, it asks a simple question: “How likely is it that you would recommend our company/product/service to a friend or colleague?” Respondents rate their likelihood on a scale from 0 to 10. 

• Promoters (9-10): Loyal enthusiasts who drive growth through referrals. 

• Passives (7-8): Satisfied but unenthusiastic customers vulnerable to competitors. 

• Detractors (0-6): Unhappy customers who can harm your brand through negative word-of-mouth. 

The score itself is calculated by subtracting the percentage of Detractors from the percentage of Promoters.  

• NPS helps identify which customer segments (Promoters, Passives, Detractors) require attention to enhance loyalty and drive better results. 

• Its single-question format provides unbiased and accurate feedback on overall brand sentiment. 

• By going one step further and analyzing the “why” behind the scores, businesses can uncover areas for improvement and capitalize on opportunities for growth. 

In retail, a typical NPS range is 0-30. Businesses that use the Chatter Research survey engine often see mid-range scores of 50-60.

How is that possible? Well, our SMS-based research conversations yield high response rates, allowing us to identify actionable insights that can be put in place right away to improve the customer experience.

Non-purchasing customers have some of the most valuable insights of all. While their feedback may initially lower NPS, it offers long-term benefits by highlighting areas for improvement. A study by the London School of Economics found that a 7–point increase in NPS can lead to a 1% increase in revenue, underscoring the importance of addressing feedback from all customer segments—especially those that present opportunities for real growth.

While NPS provides a snapshot of customer loyalty, the real value lies in understanding the reasons behind the scores. Chatter’s conversation engine interprets open-ended responses in real-time, delivering actionable insights that combine quantitative scores with qualitative feedback. All that’s left to do is implement and improve.