What is Net Promoter® ?
Fred Reichheld invented the Net Promoter Score® in 2003 when looking for links between customer loyalty and growth. He found that out of 19 loyalty attributes, the best predictor of future growth was a customer’s propensity to recommend a company's products or services to others so he came up with a question to find out:
On a scale of zero to ten, how likely is it that you would recommend [company X] to a friend or colleague?
Based on how customers answer the Net Promoter Score question, they are divided into detractors (0-6), passives (7-8) and promoters (9-10).
A company's score is derived by subtracting the percentage of detractors (those giving a likelihood of between 0 and 6) from the percentage of promoters (those giving a likelihood of 9 or 10) across all responses.