Glossary of Terms

Deepen your understanding to drive your expertise, and share with colleagues to enlighten ideas and inspire innovation. This glossary of terms will help to elevate clarity, and guide conversations that bridge gaps across teams of shared interest in customer centricity.

What is Net Promoter Score® (NPS®)?

Net Promoter Score (NPS) is the industry standard measure of customer experience (CX) and customer loyalty and it’s a top predictor of future business growth. Established in 2004, Net Promoter Score is now used by 65% of top 200 global companies to measure the strength of their customer relationships and to make informed decisions about the design of their customer journeys.

Net Promoter Scores are determined by surveying customers and asking one simple but insightful question: “How likely is it that you would recommend [brand] to a friend or colleague?” Survey participants rate the question on a 0-10 scale, where 0 means not at all likely and 10 means extremely likely. Customers who respond with 9 or 10 are Promoters, those who answer with a 7 or 8 are Passives, and customers who rate the question 0-6 are Detractors. The NPS is calculated by subtracting the percent of Detractors from the percent of Promoters. Passives do not figure into the calculation.

The above example is known as a relationship or brand NPS because it measures the strength of a customer’s overall relationship with the brand versus their perception of a single transaction. Relationship Net Promoter Scores are very relevant in today’s “experience economy” because they reflect how customers feel about the overall customer journey.

Forward-thinking companies realize NPS is more than just a “score” and have adapted their operations to take action on customer input to optimize CX and create more Promoters. Turning more customers into Promoters is especially important in this age of social media and online reviews. Those businesses that are successful at it can expect better financial results driven by higher retention, revenue, and referrals.

About NICE Satmetrix

NICE Satmetrix is the leading global provider of Voice of the Customer (VOC) software used by the world's most forward-thinking companies to analyze and transform their customer service interactions. Our Customer Journey-based solution combines and analyzes customer interactions, solicited feedback, and operational data at enterprise scale to uncover blind spots, increase customer satisfaction and improve agent performance.

With consumers reaching out to contact centers for more reasons than ever before, providing consistent and optimized experiences is central to fostering loyalty and increasing customer lifetime value. NICE Satmetrix VOC enables businesses of all sizes to grow the value of customer service touchpoints and operationalize customer feedback.

With NICE Satmetrix VOC, the top VOC solution for contact centers, contact centers get access to:

Integrations with NICE inContact CXone and the NICE portfolio of contact center solutions

  • Superior analytics
  • Digital omnichannel and hassle-free IVR integrations
  • Customer Journey-based design
  • One-stop-shop for all your contact center VOC needs

NICE Satmetrix is the co-creator of the Net Promoter Score® (NPS®), one of the best indicators of customer loyalty and predictors of business growth. We've instilled our deep knowledge of consumer behavior into our VOC software to make NICE Satmetrix holistic VOC a true one-stop shop for Voice of the Customer with a self-service solution that meets the needs of organizations of every size.

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