What does a high Net Promoter Score (NPS) indicate?

A high Net Promoter Score (NPS) indicates strong customer satisfaction and loyalty. NPS is a metric that gauges how likely customers are to recommend a company's products or services to others. A high score reflects that a significant proportion of customers are promoters—individuals who are enthusiastic about the brand, often leading to repeat purchases and positive word-of-mouth referrals. This level of customer loyalty can contribute to a stronger brand reputation and increased sales, making it a valuable indicator for businesses focused on customer-centric strategies.

In contrast, the other options relate to different aspects of business performance and do not directly tie to NPS. Low employee engagement, poor product quality, and high operational costs pertain to internal business conditions and customer perceptions, but they do not measure customer loyalty or satisfaction as effectively as NPS does. Therefore, the strong correlation between a high NPS and customer loyalty is what makes that option the correct choice.