We are proud to announce that Affirm’s Net Promoter Score (NPS) has reached +83. We believe that number is critical for us to be sure that we are delivering on our mission of providing consumers with honest, transparent financing.

Net Promoter Score, or NPS, is a metric used to assess the loyalty of customers to a business. NPS is measured by asking a single question: “How likely are you to recommend us to a friend or colleague?” and customers are asked to respond on a scale of 1-10.

All of the customers’ responses are compiled and sorted into three tiers:

• Detractors: Anyone who answered with less than a six on the sliding scale are put into a group and labeled as “detractors.” These people are not likely to purchase from the company again and may even share a negative experience through word of mouth.

• Passives: Anyone who scored their likelihood to recommend the company with a seven or an eight is labeled as a “passive.” A passive score is just what it sounds like; someone who probably wouldn’t share negatively about the company but may also be likely to try a competitor if the right opportunity arises.

• Promoters: Anyone who rated their likelihood to recommend the company as a 9 or 10 on the scale goes into the “promoter” bucket. These people are strong advocates for the company and have a high probability of recommending it to their friends and colleagues.

From there to determine the company’s NPS score, the percentage of customers who are detractors is subtracted from the percentage of customers who are promoters. The result is a numeric score between -100 to 100, and that number is the company’s net promoter score. We are very proud of our +83 score as many traditional consumer credit brands are rated in the single digits or lower.

So, why is it meaningful for consumers to know what a company’s Net Promoter Score is?

For one thing, NPS is a good indicator of how satisfied a company’s customers are. By asking that one question of whether a consumer would recommend the company to a friend or colleague, it quantifies how well that company has delivered on their brand promise. Most consumers who are evaluating whether to patronize a company or not will find it tremendously valuable to know how the customers of a company rate their experience with the brand. If the majority of a brand’s customers have had a mediocre experience, or worse—a negative experience, and would not recommend the company to their friends and colleagues, a new customer would likely expect a similarly unsatisfactory experience. The vast majority of consumers would prefer to do business with a brand that is known for delivering a positive experience.

Perhaps even more importantly, the Net Promoter Score is critical to accountability and consumer protection. NPS provides a voice to consumers by allowing them to hold companies responsible for the experience they provide.

The brands that fulfill their promise to consumers and treat them well are rewarded with high NPS scores, which reinforces the value of their promise while solidifying customer loyalty. Loyalty is essential to the growth of any business as it impacts top-line growth as well as profitability. Retaining customers is significantly more cost effective than constantly having to acquire new customers to sustain growth. On top of that, unhappy customers are a liability to the reputation of a company, and that can be detrimental to new customer acquisition.

In a time when consumers are highly skeptical of consumer credit, NPS is an opportunity for both brands and consumers to benefit from transparency and the reassurance that the brand will do right by the customer. We’re proud of our score and what it represents for both our customers, merchants, and the future of the credit industry.

We believe that it’s proof positive that both consumers and businesses can win with honest financing.