Net Promoter Score (NPS)
Definition
A customer loyalty metric derived from a single survey question asking respondents how likely they are to recommend a company, product, or service on a scale of zero to ten. NPS is widely used as a proxy for customer relationship quality and brand strength, both of which are critical intangible assets influencing long-term enterprise value.
Complementary Terms
Concepts that frequently appear alongside Net Promoter Score (NPS) in practice.
A quantitative measure of data fitness for its intended use, typically assessed across dimensions including accuracy, completeness, consistency, timeliness, uniqueness, and validity. Data quality scores enable organisations to monitor and improve the reliability of their data assets, prioritise remediation efforts, and establish trust in analytical outputs.
A quantitative rating assessing a company's performance and risk exposure across environmental, social, and governance criteria, typically assigned by specialist rating agencies such as MSCI, Sustainalytics, and S&P Global. ESG scores increasingly influence investment decisions, cost of capital, and regulatory compliance, and are becoming a material factor in business valuations and due diligence.
The intangible premium that a business commands above the fair value of its net tangible assets, reflecting factors such as brand strength, regulatory licences, customer loyalty, and market position. Franchise value is a critical concept in financial services and regulated industries where the right to operate carries significant economic worth.
An intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets. Goodwill reflects factors such as brand value, customer loyalty, workforce expertise, and synergies that are expected to generate future economic benefits.
The total net revenue a business expects to earn from a single customer over the entire duration of the relationship. LTV is driven by average revenue per user, gross margin, and retention rates, and is directly influenced by brand and relationship intangibles.
The commercial value derived from consumer perception of a brand name. Brand equity is one of the most significant intangible assets for consumer-facing businesses and influences pricing power, customer loyalty, and market share.
The intangible value derived from artistic, design, and creative capabilities within an organisation. Creative capital encompasses brand aesthetics, content libraries, product design expertise, and cultural assets that differentiate a business and drive customer engagement.
An intangible asset category representing the value embedded in a company's established customer base, including long-term contracts, loyalty, recurring purchase behaviour, and the cost advantage of retaining versus acquiring customers. Under IFRS 3, customer relationships are separately identified and measured at fair value during purchase price allocations, typically using the Multi-Period Excess Earnings Method (MPEEM) which projects cash flows from the existing customer base over its expected attrition period.
Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.