Which of the following metrics is important for understanding customer satisfaction?

The Net Promoter Score (NPS) is a critical metric used to gauge customer satisfaction as it directly measures the likelihood of customers recommending a company's products or services to others. This score is derived from survey questions that ask customers to rate their likelihood of recommending the business on a scale, typically from 0 to 10. A higher score indicates a greater level of customer loyalty and satisfaction, making it a valuable tool for organizations seeking to understand their customers' experiences and overall satisfaction levels.

In contrast, Customer Lifetime Value focuses on the total revenue a business can expect from a customer over the duration of their relationship, which provides insights into the financial impact of customer relationships rather than satisfaction. Sales Growth Rate measures the increase in sales over time, indicating business performance rather than customer contentment. Employee Satisfaction Score reflects the well-being and morale of employees, which, while important, does not directly indicate how satisfied customers are with the products or services they receive.

Thus, NPS stands out as the most relevant metric for capturing customer satisfaction, providing actionable insights that can drive improvements in customer experiences.