Net Promoter Score is a standard customer experience metric that enables businesses to gauge their customer retention and loyalty. In simpler terms, the metric measures the willingness of the customers to recommend your brand to their family or friend by asking a simple question –

→ How likely are you to recommend us to a family or friend?
This question is answered on an 11-point rating scale, ranging from 0 (not at all likely) to 10 (extremely likely). The respondents of these questions are divided into three categories called Promoters, Passives, and Detractors (which we will discuss later) based on their responses.

But is your NPS good or bad?

Let’s get into it.
To understand whether an NPS® score is good or bad, we must first understand how it is calculated.

Deep dive: How is Net promoter score® calculated?
Before we dive into the specifics of NPS® calculation, you must know that NPS® is an absolute number that lies between -100 to 100. It is not a percentage as is the case with most KPIs and business metrics.

NPS® segments customers into 3 categories: promoters, passives, and detractors.
1. Promoters are customers who have given a score of 9 or 10. You can count on these customers as those with high lifetime value and those who will remain loyal to the business for the foreseeable future.

Also, they are highly likely to act as mouthpieces for Word of Mouth marketing for your business.
2. Passives are customers who have given a score of 7 or 8. They are currently loyal to the brand but are at a high risk of churning. Their loyalty is fickle and hence can be easily lured by competitors with better pricing, features, or even with a single negative experience from your business.

Passive customers are less likely to refer new customers to your business.

3. Detractors are respondents who have given a score of 0 to 6. They are a risky lot since instead of spreading positivity about the brand, there is a high chance that they would spread negativity about the brand.

They are also on the verge of churning and have most probably been subject to negative customer experiences in the past.

Now that we know what promoters, passives, and detractors are, let’s calculate the NPS Score.

Further Reading: https://www.surveysensum.com/blog/what-is-a-good-net-promoter-score/