How to measure & calculate Net Promoter Score (NPS)

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Net Promoter Score often referred as NPS is a metric that indicates the customers’ likelihood chance to recommend a product, service, or organization as a score for your customer experience.

What is Net Promoter Score (NPS)?

NPS is a metric that tells you your overall customer experience quality, based on your existing customers’ likelihood to recommend your product, service, or organisation.

Yes, sounds simple & straight forward, but what does that actually mean?

In any customer experience programs staff/ managers handling need to quantify the sentiments of the customers by measuring using a quantitative mechanism or score. Score gives indication of happy customers and their brand loyalty, a positive level of satisfaction or high reported levels of top-quality customer services

This data leading to the score can have a profound impact on the strategy, budget-allocation, and any plans for the organization. In these cases and others, NPS is used to get a representative landscape of how your customers think about you.

What is the formula for NPS? 

The Net Promoter Score replicates the customer experience process to a greater extent, working at a business-to-business level and directly asking their existing customers.

The scale is rated from 0 (not at all likely) to 10 (extremely likely). Depending on the responses, customers fall into one of 3 categories- Promoters, Passives & Detractors

  • Promoters are customers who respond with a score of 9 or 10. Typically, these customers are loyal and enthusiastic customers.
  • Passives are customers who respond with a score of 7 or 8. These customers are satisfied with your service but not happy enough to be considered promoters.
  • Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.
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From examining the ratios of each group along the scale, you can see that there is more opportunity to be seen as a detractor, than as a passive or promoter.

Subtracting the percentage of detractors from the percentage of promoters.

Net Promoters Score= Total % of promoters  – total % of detractors

Sample Excel Calculator for Net Promoter Score