The NPS (Net Promoter Score) is a way to quickly measure how satisfied your customers are with your business. The basis of the Net Promotor Score is that one simple question can tell you a lot about how your customers perceive your business. The question is: “How likely is it that you would recommend this company to a friend or colleague?”

Customers answer on a scale from 0 – 10, with 0 meaning Not Likely and 10 meaning Very Likely.
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​Those who answer 9 or 10 are “Promoters”

Those who answer 7 or 8 are “Passive”

Those who answer 0 – 6 are “Detractors”

The percentage of detractors is subtracted from the percentage of promoters to get the Net Promoter Score.

Monitoring your NPS gives you a quick indicator of the health of your business in terms of customer satisfaction.

More information: Harvard Business Review article on the importance of measuring the NPS score.

How To Read Your NPS Score

Companies with a better ratio of promoters to detractors tend to grow more rapidly than their competitors.

Companies with the most efficient growth engines operate with an NPS of 50 to 80. The average firm sputters along at an NPS of only 5 to 10 – in other words, their promoters barely outnumber their detractors.

Many firms – and some entire industries – have negative Net Promoter Scores, which means that they are creating more detractors than promoters day in and day out.

These low scores explain why so many companies can’t deliver profitable, sustainable growth – no matter how aggressively they spend to acquire new business.

Source: http://www.netpromoter.com/why-net-promoter/compare/
Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

Why and how does Reputation Builder translate the NPS score into a 5 Star rating?

Reputation Builder translates the NPS score into a 1-5 star rating as found on Google and Facebook etc. This is beneficial for showing testimonials and aggregated scores on your website using the Review Widget. Google and other search engines will be able to index those testimonials since Reputation Builder indexes them in the Schema Review Markup which is based on a 5 star system.

NPS Score to Star conversion

NPS Score 10 = 5 Stars
NPS Score 9 = 4.5 Stars
NPS Score 8 = 4 Stars
NPS Score 7 = 3.5 Stars
NPS Score 6 = 3 Stars
NPS Score 5 = 2.5 Stars
NPS Score 4 = 2 Stars
NPS Score 3 = 1.5 Stars
NPS Score 2 = 1 Star
NPS Score 1 = 0.5 Stars
NPS Score 0 = 0 Stars