What Is Net Promoter Score? How to Calculate & Analyze NPS

Growing revenue can be a short-term strategy that brings immediate gains, but focusing on customer loyalty is vital for long-term, sustained growth and success. It provides a way for companies to predict customer behavior, such as their likelihood of making a repeat purchase or referring a product to their friends. Reichheld’s research suggests that the percentage of customers who are enthusiastic enough about a product to refer it to a friend or colleague directly correlates with growth. In most industries, it remains the single most effective question to ask that will give you a snapshot of customer sentiment in a way that implies loyalty—the kind of loyalty that has a direct impact on your bottom-line metrics. Understanding how different customer groups perceive your brand and their loyalty levels can guide targeted retention and acquisition strategies.