What is the main purpose of the Net Promoter Score (NPS)?

The primary purpose of the Net Promoter Score (NPS) is to assess customer loyalty and advocacy. NPS provides a straightforward metric that indicates how likely customers are to recommend a company’s products or services to others. This measure goes beyond mere satisfaction; it focuses on the customer’s willingness to act as a promoter, which is a strong indicator of their overall loyalty and emotional connection to the brand. High NPS scores typically suggest that customers are satisfied not only with the product itself but also with the overall experience provided by the company, making them more likely to return and advocate for the brand.

In contrast, calculating churn rate specifically analyzes the percentage of customers who stop using a service over a certain period, which is a metric related to customer retention but not directly about loyalty or advocacy. Measuring customer satisfaction can provide insights into how well products or services are meeting customer expectations, but it doesn't capture the potential for customers to actively promote the brand to others, which is critical in building a loyal customer base. Evaluating product features involves assessing the functionality and usability of specific products rather than understanding the broader relationship customers have with the company as a whole.