Net Promoter Score

Net Promoter Score (NPS), developed by Bain & Company, is a widely used measure of customer loyalty based on a single question: how likely a customer is to recommend a vendor to others.

The approach reflects three broad ideas:

• Recommendation as a Signal of Satisfaction & Loyalty: Customers who are willing to recommend a vendor are typically the most satisfied.
• Value of Advocacy: Customers who recommend a vendor can create additional value through referrals, references, and positive word-of-mouth.
• Where to Focus: The goal of the approach is to identify broader organizational behaviors that influence the customer relationship.

Today, the primary value of NPS is its familiarity and standardization. Most stakeholders have heard of NPS and view it positively, even if they do not know the details of the approach.

The primary limitation of NPS is that it is a high-level indicator. In complex B2B environments—where relationships involve products, implementation, support, contracts, and ongoing service—companies often require more detailed feedback to identify specific areas in need of improvement.