← Business Metric: Operational (all topics)
Net promoter score & customer satisfaction
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