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What is Net Promoter Score?

Definition

Net Promoter Score

Net Promoter Score (NPS) is a customer loyalty metric that measures how likely users are to recommend a startup's product or service to others.

Why It Matters for Startups

Essential for navigating early-stage business execution; mastering Net Promoter Score allows founding teams to scale operations, manage risk, and optimize efficiency for customer feedback loops and product health surveys.

Detailed Deep Dive

Net Promoter Score (NPS) evaluates customer loyalty using a 0-10 rating scale. Startups track NPS to identify detractors at risk of churning and promoters who can drive organic referrals.

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Frequently Asked Questions

Q:How is Net Promoter Score calculated?

NPS = Percentage of Promoters (rating 9-10) - Percentage of Detractors (rating 0-6).

Q:What is a good NPS?

A score above 50 is considered excellent, while a score above 70 is outstanding, indicating organic word-of-mouth growth.

Quick Facts

  • CategoryMetrics
  • Key ApplicationCustomer feedback loops and product health surveys

Coverage Trend12 Weeks

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Cite This Term

Reference this definition in your articles, research, or documentation to credit this source:

[Net Promoter Score | SPIDITS Glossary](https://spidits.com/startup-glossary/nps)

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