How to Calculate NPS Score

how-to-calculate-nps

The Net Promoter Score (NPS) acts as an indicator of the satisfaction of your customers. Scores range from -100 to 100 and measures the willingness of customers to recommend your brand and services to others. The score can be used to gauge overall customer satisfaction and a foundation of a measurement framework to improve satisfaction. Here’s a breakdown on how to calculate NPS score.

Calculate NPS Score
Customers are surveyed on a single question, using a 0-10 rating scale.

How likely is it that you would recommend this company’s product or service to a friend or a colleague?

Based on their rating, respondents are grouped into three categories as follows:

Promoters
Promoters provide a rating of 9 or 10. They generally like the company and its product and service offering. Typically, they are repeat buyers and will fuel organizational growth, refer others and remain loyal to your organization.

Passives
Passives give a rating of 7 or 8 and are generally unenthusiastic customers. Though they will not speak negatively about your organization through word-of-mouth, they also are not likely to promote your products or services. They are especially vulnerable to competitive offerings.

Detractors
Detractors give a score equal or below 6. They are generally unhappy with the organization, its products or its services. They can impede organizational growth and damage your brand through negative word-of-mouth.

NPS is calculated by subtracting the percentage of respondents that are Detractors from the percentage of respondents that are Promoters. The score should fall between -100 and 100. The higher your NPS score, the more satisfied customers you have and the more promoters you have.

NPS can give you a foundation to work on to improve and provide a good customer experience. High scores indicate a healthy, growing business, while a lower NPS can be an indication of customer loyalty issues and customer dissatisfaction.

How to Increase Net Promoter Score?
It’s important to have close the loop in an NPS eco-system. Employees should follow-up with all detractors, and doing so can lead to improved scores in the future. It’s also important to follow-up on Passives because they can easily switch to a competitor. Determining what the underlying issues are with and for that customer, and working to find a solution can easily improve your NPS score and overall customer satisfaction.