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Net promoter score & customer satisfaction

Business Model & Unit Economics · Unit metrics

What it is

The share of customers who would recommend the business, less the share who would not. It is used as a leading indicator of retention and organic growth

It is a survey measure, so it reflects stated intent rather than behaviour

Impact on industries

  • Leads churn and repeat purchase, so it gives earlier warning than financial metrics of a deteriorating customer relationship
  • Simple and comparable enough to be tracked continuously and tied to operational accountability
  • Easily gamed by survey timing and sample selection, and respondents are rarely representative of the customer base
  • It measures sentiment, not spend - satisfied customers in a category with low switching costs still leave for price