The Net Promoter Score®, is one of the world's leading and the most popular Customer Experience metric for measuring Customer Satisfaction and Loyalty. The NPS System is designed to go beyond measuring Customer Satisfaction; to gauge customers' willingness to recommend your business to others, in short words, to gauge customer loyalty. Because of its ability to measure customer loyalty accurately and with ease, NPS is considered a predictor of business growth.
To know how to calculate the Net Promoter Score, let us first understand a little more about the NPS System and NPS Scale.
The Net Promoter Score Scale
The Net Promoter Score is determined by asking the simple NPS Question: “On a scale of 0 to 10, how likely is it that you would recommend our organization to a friend or colleague?” This question is rated on a scale of 0-10, based on customer's willingness to recommend your business, with 0 being the most unlikely and 10 being the most likely.
Based on the score given, the customers are classified into three different categories. These NPS Categories are:
- Detractors (0-6)
- Passives (7-8)
Passives are those who are neither looking at speaking ill nor positively about your brand. They are likely to be swayed
- Promoters (9-10)
Promoters are brand loyalists, customers who are most likely to recommend your brand to others, as well as be your brand ambassadors.
Classification of Respondents
- Promoters: They are those customers who range their willingness of recommendation to 9 or 10 and very satisfied with the kind of customer experience you are offering them. They are the repeat buyers, who recommend you as a brand and your product/service to other potential buyers.
- Detractors: They are those customers who range their willingness of recommendation from 0 to 6 and considered to be very unsatisfied. They are less likely to remain for long and denied to recommend you as a brand and your product/service to other potential buyers.
- Passives: They are those customers whose behaviour falls between promoters and detractors. They range their willingness of recommendation to 7 or 8 and moderately satisfied with the kind of customer experience you are offering them. These kinds of customers never spread any negative word-of-mouth, but are not enthusiastic enough to promote your product/service.
Net Promoter Score Formula
To calculate the Net Promoter Score, we use a simple NPS formula where we subtract the total percentage of Detractors from the percentage of Promoters to determine your overall Net Promoter Score.
For example, if your % Promoters are 80% and % Detractors 30%, then your
Net Promoter Score = 80% - 30% = 50
NPS Score ranges from -100 to 100.
How to Calculate the Net Promoter Score?
There's only one standard (and right) formula to calculate the Net Promoter Score, as laid out by Bain & Co. Based on how you conduct the NPS Survey, you can use various methods to derive to the Net Promoter Score. Let's explore them below.
3 Methods to Calculate the Net Promoter Score
How to Calculate Net Promoter Score in Excel?
Calculating the Net Promoter Score manually is a tedious and time-consuming task. But thanks to Excel that has made NPS Calculation an easy task. You can calculate NPS by using the COUNTIF function. It is the statistical function that counts the number of cells that contain data (NPS Scores). Calculating the NPS via Excel is not rocket science, with just a few steps you can create your own NPS Calculator in Excel or Google Sheet.
Step 1 - Export or copy-paste the data from the file into an excel sheet.
Step 2 - Now separate the responses in each category (detractors, passives, and promoters) and count them. Say, let’s assume the scores given by respondents are contained in Column C. So, the function for finding the number of responses for:
- Detractors (0-6): =COUNTIF(C:C,”<=6”)
- Passives (7-8): =COUNTIF(C:C,"7")+COUNTIF(C:C,"8")
- Promoters (9-10): =COUNTIF(C:C,">=9")
Step 3 - Now you can find the percentage of each category by using the simple formula: Number of Responses from (different NPS audience - Detractors, Passives, and Promoters) ÷ Total Number of Respondents x 100.
For Example: Say, you've sent a NPS Survey with the NPS questions and you've received 40 responses from your customers:
10, 7, 5, 9, 9, 9, 6, 4, 9, 8, 9, 9, 9, 10, 10, 10, 4, 5, 5, 7, 7, 10, 10, 10, 5, 6, 10, 10, 9, 8, 10, 10, 8, 7, 9, 9, 9, 10, 9, 7
Now paste the score and arrange them in your Excel sheet.
- Detractors - 8 responses
- Passives - 8 responses
- Promoters - 24 responses
When you calculate the percentages for each group, you get 20%, 20%, and 60% respectively.
In an excel sheet, you can get your NPS Score either by calculating manually or by using the simple Net Promoter Score formula: Net Promoter Score = % of Promoters - % of Detractors
NPS = 60% - 20% = 40
So, Your Net Promoter Score is 40
You can also use the COUNTIF functionality formula to find your net promoter score:
Note - Net Promoter Score is always shown as just an integer and not a percentage.
How to Calculate NPS using Online Calculator?
Calculating the Net Promoter Score is very easy by summing up all the responses and then subtracting the percentage of detractors (those who rated between 0-6) from the percentage of promoters (those who rated 9-10). The Net Promoter Score ranges from +100 to -100 and is a metric that tells you about the loyalty of your customers or employees. Use the free online NPS Calculator to know the Net Promoter Score.
How to Calculate Net Promoter Score using NPS Survey Tool?
An ideal way to measure Net Promoter Score is to use a NPS Survey App. With the help of a NPS Software, you can take NPS surveys across various platforms like on premises using tablets, iPads and kiosks, or send email and SMS surveys with NPS question or embed NPS Surveys on your website. These NPS Survey Tools also enable you to view scores and feedback responses in real-time to identify your detractors and take action.
The Net Promoter Score gives you not only a number, but an opportunity to improve your business along with the customer experience. Thus, Net Promoter Score provides you with the privilege to focus on the ‘Why’ behind the ‘What’ for both promoters and detractors to augment the health of your customer experience. You can also create your customized Net Promoter Score report for different team members and share them to inspire action.
Ready to get started? We’ve got FREE Net Promoter Score Calculator (in excel) for you.