Earlier this week we talked about which factors people use to gauge their success as a small business owner. Today we’re going to look at a great to measure the success of the business itself. It’s called the Net Promoter Score (NPS).

If you’ve not heard of it before, the NPS of a business is measured with one simple question posed to its customers: “how likely would you be to recommend this business to a friend or colleague?” The respondents’ answers fall on a scale of 1 to 10, and are then grouped into 3 categories – Promoters (9-10), Passives (7-8), and Detractors (6 or below). To make it simple, you disregard the Passives, and then subtract the percentage of Detractors from the percentage of Promoters, and that number is your NPS. Sometimes expressed as a percentage, sometimes as a score.



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