Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a simple yet effective method for measuring customer satisfaction and loyalty. Participants are asked how likely they are to recommend an organization on a scale from 0 to 10. To calculate the NPS, the percentage of detractors (those rating 0-6) is subtracted from the percentage of promoters (those rating 9-10). Neutral responses (7-8) are not included in the calculation.

Originally developed by the consulting firm Bain & Company, NPS is also widely applied in the nonprofit sector. It serves as a key performance indicator (KPI) for benchmarking against other organizations and assessing the effectiveness of customer retention strategies. The NPS concept is particularly popular in the USA, where the benchmark for nonprofit organizations ranges between 30 and 50, depending on the sector. An organization with a score of 50 or more, thus demonstrates a very strong donor loyalty.