Net Promoter Score (NPS)

What is NPS?

The Net Promoter Score (NPS) is a customer satisfaction metric that measures how likely your customers are to recommend your brand to others. Created in 2003 by Fred Reichheld, it has become one of the most widely used KPIs in e-commerce for evaluating customer loyalty.

NPS is based on one simple question: "On a scale of 0 to 10, how likely are you to recommend our brand to a friend or colleague?"

How to Calculate NPS?

NPS calculation categorizes respondents into three groups:

• Promoters (9-10): Enthusiastic customers, brand ambassadors
• Passives (7-8): Satisfied but vulnerable to competitors
• Detractors (0-6): Unhappy customers who can damage your reputation

NPS Formula: % Promoters - % Detractors = NPS Score

The score ranges from -100 (all detractors) to +100 (all promoters). An NPS above 0 is considered good, above 50 is excellent.

Why is NPS Crucial for Your E-commerce?

Customer satisfaction NPS directly correlates with business growth. Studies show that companies with high NPS experience 2x faster growth than competitors.

In e-commerce, a strong NPS means:

• More organic referrals (word-of-mouth)
• Higher customer retention rates
• Increased Customer Lifetime Value (LTV)
• Lower acquisition costs

How Review Collect Helps Improve Your NPS

Review Collect automates post-purchase feedback collection and lets you track your NPS in real-time. Our solution automatically identifies detractors for quick action and transforms promoters into active brand advocates.

Discover our review collection solution to boost your NPS.