{"id":54626,"date":"2022-09-01T13:04:55","date_gmt":"2022-09-01T17:04:55","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=54626"},"modified":"2026-05-14T01:55:03","modified_gmt":"2026-05-14T05:55:03","slug":"buzzword-decoded-what-is-nps-really","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/buzzword-decoded-what-is-nps-really\/","title":{"rendered":"Buzzword Decoded: What is NPS Really?"},"content":{"rendered":"

The Net Promoter Score (NPS), and its employee counterpart eNPS, is a metric that many businesses use to understand how their customers feel about their organization (in conjunction with the Customer Satisfaction Score<\/a>). While both metrics measure perception-based data, they are targeting two very different understandings\u2014and knowing the difference is key.<\/p>\n

<\/div>\n

NPS is focused on customer loyalty, which goes beyond just\u00a0customer satisfaction<\/a>. What you really want to understand is how likely a customer is to share your product or service with others, speak about it positively online or with others, and how you can keep them loyal to your brand.<\/p>\n

<\/div>\n

So why is NPS so important? We\u2019re going to get into that and help you understand just why you need to do NPS in conjunction with CSAT for more meaningful insights.<\/p>\n

<\/div>\n

\"CSAT<\/p>\n

<\/div>\n

A bit of history!<\/h2>\n

Did you know that NPS is trademarked? It is! It was developed in 2001 by Fred Reichheld, in conjunction with Brain & Company and Satmetrix, as a simple and transparent measurement of recommendation. Such a small thing with such a big impact. As an indicator of loyalty, identifying your \u201cpromoters\u201d (within scores 9-10, traditionally), \u201cpassives\u201d (scores 7-8), and \u201cdetractors\u201d (scores 6 and below) can help companies do many things within their organization, including:<\/p>\n

<\/div>\n
    \n
  1. Use strategic planning to turn passives into promoters<\/li>\n
  2. Find blind spots and pain points in their product\/services from detractors’ feedback<\/li>\n
  3. Identify milestones and benchmarks<\/li>\n
  4. Monitor comparisons between them and their competitors from customer perception<\/li>\n
  5. Provide a systematic measurement to trend over time<\/li>\n<\/ol>\n

    You can also supercharge NPS by using a survey tool<\/a> to pair it with driver questions that deliver a deeper understanding of the reasons behind the score.<\/p>\n

    <\/div>\n

    Reputation management for any brand<\/h2>\n

    Edelman conducted a study<\/a>\u202fwhich showed that consumers between the ages\u202fof 18 and 34 years tend to \u201ctrust what\u202finfluencers say about brands much more\u202fthan what brands say about themselves.\u201d With that in mind, the NPS is a great way to manage your online reputation<\/a>! Controlling the conversation, waylaying frustrations before they become critical issues, and listening to the voice of the customer are all things NPS enables you to do.<\/p>\n

    <\/div>\n

    What is a \u201cpromoter,\u201d really? <\/em><\/p>\n

    <\/div>\n

    Say hello to your brand ambassadors whose voice you want to amplify! A\u202fpromoter\u202fis a person, inside or\u202foutside of a company, who promotes a\u202fproduct, service, or brand. It\u2019s a simple\u202fdefinition, but one that packs quite a\u202fpunch. These are the positive word-of-mouth buzz creators. Think influencers,\u202fdirect-care staff who share your system\u202fwith their loved ones, and your patients\u202fwho leave glowing reviews about their\u202fexperiences.<\/p>\n

    <\/div>\n

    What is a \u201cpassive,\u201d really? <\/em><\/p>\n

    <\/div>\n

    Say hello to your opportunity-drivers! Passives\u202fget constantly overlooked,\u202fand it\u2019s unfortunate. They are neutral on\u202fthe playing field, possibly liking what\u202fyou have, but not enough to share it\u202fwith others. They tend to not leave\u202freviews, or if they do, words like \u201cokay\u201d\u202for \u201cenough\u201d may pepper their posts.\u202fBasically, a passive consumer or patient tells you that\u202fyou did your job, but nothing more.<\/p>\n

    <\/div>\n

    What is a \u201cdetractor,\u201d really? <\/em><\/p>\n

    <\/div>\n

    Say hello to your greatest strategy drivers! Your\u202fdetractors\u202fare those who are\u202funhappy with your service, or brand, and\u202fthey typically are vocal about it, just like\u202fyour promoters. In a single word,\u202fthey\u202fare\u202fyour critics. Think about this\u2014only\u202fabout one in 26 unhappy customers\u202fwill complain, according to GrooveHQ.\u202fThe rest will churn\u2014or\u202fleave without even saying a thing. That\u2019s\u202fa lot of potential loss you\u202fmight not even\u202frealize you\u2019re facing!<\/p>\n

    <\/div>\n

    Business impact<\/h2>\n

    NPS correlates with a few aspects of business growth that are important to note:<\/p>\n

    <\/div>\n