NPS is a metric which assesses the loyalty of any company's customers. Customers are asked to answer a single question: On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?
Based on the answers, customers are categorized as Detractors, Passives or Promoters. O NPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Despite being a good metric to find out if your product or service is being used by customers, is dangerous if used as a target. When NPS becomes a goal, incentives are created to do the survey only with the best clients in order to increase the number, because this "raises the NPS" more easily than improving the product or service.
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