Net Promoter Score
Net Promoter Score definition
The Net Promoter Score is the world’s leading metric for measuring customer satisfaction and loyalty. It goes beyond measuring how satisfied a customer is with a company; the Net Promoter Score system is designed to gauge their willingness to recommend it to others.
Net Promoter Score scale
The score comes from the NPS question, which is:
“On a scale of 0 to 10, how likely is it that you would recommend our organization to a friend or colleague?”
Based on the number a customer chooses, they’re classified into one of the following categories: “Detractors,” “Passives,” and “Promoters.”
Score breakdowns:
0 – 6: Detractors
7 – 8: Passives
9-10: Promoters
You can think of the NPS system as similar to a four-star system on an online review, but the NPS scale gives you a broader way (and a more accurate method) to measure customer’s opinions.
What is a promoter in NPS?
A promoter in NPS is anybody who answered the ‘how likely are you to recommend this product/company to a friend or colleague?’ question with a score of 9 or 10.
As your most enthusiastic customers, promoters are likely to stick with you and act as your brand ambassadors, which in turn helps fuel growth.
What is a detractor in NPS?
A detractor in NPS is anybody who answered the ‘how likely are you to recommend this product/company to a friend or colleague?’ question with a score between 0 and 6 (included).
They’re obviously not your biggest fans. But it’s worse than that: not only are they not likely to recommend you to others—they are the first candidates for leaving you and might even actively discourage other people away from your product. One of your main goals is making sure you have fewer detractors.
What about passives?
Sat in the middle of detractors and promoters are the passives, who answered the NPS question with a score of 7 or 8. Technically, you should look at them as people who are ‘passively satisfied’ with your product or service but are not supremely loyal to it, which means they can be snatched away by the competition.
How to calculate your company's Net Promoter Score
The NPS system gives you a percentage, based on the classification that respondents fall into—from Detractors to Promoters. So to calculate the percentage, follow these steps:
Simply input the data into a N.P.S. Calculator or follow the instructions below:
https://delighted.com/nps-calculator
– Enter all of the survey responses into an Excel spreadsheet.
– Now, break down the responses by Detractors, Passives, and Promoters.
– Add up the total responses from each group.
– To get the percentage, take the group total and divide it by the total number of survey responses.
– Now, subtract the percentage total of Detractors from the percentage total of Promoters—this is your NPS score.
Let’s break it down:
(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
Example: If you received 100 responses to your survey:
10 responses were in the 0–6 range (Detractors)
20 responses were in the 7–8 range (Passives)
70 responses were in the 9–10 range (Promoters)
When you calculate the percentages for each group, you get 10%, 20%, and 70% respectively.
To finish up, subtract 10% (Detractors) from 70% (Promoters), which equals 60%. Since an example Net Promoter Score is always shown as just an integer and not a percentage, your NPS is simply 60. (And yes, you can have a negative NPS, as your score can range from -100 to +100.)
Performing these calculations might seem overwhelming, but it’s well worth the effort. Numerous research studies prove that the NPS system correlates with business growth. In fact, studies by the Harvard Business Review and Satmetrix have found that companies across industries earn a higher income when they improve their Net Promoter Scores.
So, if you’re looking for a more scientific way to understand your brand’s strength, the NPS is a straightforward system to use. And if you’re looking to contextualize your score, you can benchmark it against others in your industry.