QPractice question
Which of the following best describes Net Promoter Score (NPS)?
  1. A.Customer Lifetime Value divided by Customer Acquisition Cost — the dominant unit-economics metric for evaluating customer-acquisition efficiency.
  2. B.Reichheld's loyalty metric: percentage of Promoters (9-10) minus Detractors (0-6) on the "would you recommend" question, ranging from -100 to +100. ✓
  3. C.A direct measure — typically a 5-point scale — of how satisfied a customer is with a specific interaction, product, or overall relationship.
  4. D.Reichheld's loyalty metric: percentage of Promoters (9-10) minus Detractors (0-6) on the "would you recommend" question, ranging from -100 to +100.
Why this answer:

Net Promoter Score (NPS) is reichheld's loyalty metric: percentage of Promoters (9-10) minus Detractors (0-6) on the "would you recommend" question, ranging from -100 to +100. The other options describe related but distinct concepts in Digital & Analytics — see the deep-dive guide for the full distinction.

How to think about questions like this

Predicts growth and is internationally comparable. Questions like this test whether you can distinguish Net Promoter Score (NPS) from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Net Promoter Score (NPS) for a worked example you can adapt to your assignment.