Net Promoter® is a customer loyalty metric developed after 30-years of intensive customer loyalty research by Frederick F. Reichheld in conjunction with Bain & Company and Satmetrix.

Companies obtain their Net Promoter Score™ by asking customers the question on a 0 to 10 rating scale: “How likely is it that you would recommend the credit union to a colleague, family member or friend?”.  Based on their responses, Members can be categorized into one of three groups:

  • Promoters (9-10 rating)
  • Passives (7-8 rating)
  • Detractors (0-6 rating)

The percentage of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter Score.


This method of loyalty measurement has been shown to be very effective and has been adopted worldwide by leading companies. They have found it easier for employees to understand and act on than more complicated, obscure or hard-to-understand satisfaction metrics or indices.

The Net Promoter methodology can reduce the complexity of implementation and analysis frequently associated with traditional measures of member satisfaction. It allows for a stable measure of business performance that can be compared across branches, departments, credit unions and even across industries.

Best in class companies follow this question with an open-ended request for elaboration, soliciting the reasons for a member’s rating.   These reasons can then be provided to front-line employees and management teams for follow-up action.  The actionability of the Net Promoter Score allows for faster and more effective product and service improvements, which lead to increased loyalty.

Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.

Contact us today to learn more about NPS and the Member Loyalty Group solution.