Net Promoter Score (NPS) is calculated how?

• A. A calculation based on customer satisfaction scores on a 10-point scale.
• B. A metric for market share growth in a quarter.
• C. An index of net revenue per customer.
• D. A measure of customer loyalty; calculated as % promoters minus % detractors.

Answer: (D)

Net Promoter Score measures loyalty by capturing how likely customers are to recommend your company to others. It segments responses into promoters (9–10), passives (7–8), and detractors (0–6). The score is calculated by taking the percentage of promoters and subtracting the percentage of detractors, with passives not counted in the final calculation. The result ranges from -100 to +100 and reflects overall customer advocacy and changes over time.

So, if 60% are promoters and 20% are detractors, the NPS would be 40. This differs from other metrics: a satisfaction score on a 10-point scale or a market-share or revenue metric don’t capture willingness to recommend, which is what NPS specifically measures.