Show related guide
- The Net Promoter Score Guide
- Why Measure Net Promoter Score
- The Net Promoter Score System
- How to calculate the Net Promoter Score
- Net Promoter Score Benchmark
- The Net Promoter Score Survey
- How to use Net Promoter Score (NPS) Questions
- How to track your Net Promoter Score (NPS)
- How to improve your Net Promoter Score
- Employee Net Promoter Score (eNPS)
- How to collect Net Promoter Sco
What is Net Promoter Score
Net Promoter Score (NPS) is the leading customer feedback metric that was incorporated by the leading management-consulting firm Bain & Company. It is being widely used to determine the loyalty of a firm's customer relationships. You can easily measure Net Promoter Score using Net Promoter Score Software to track the willingness of customers to recommend your product and service or your brand.
The Net Promoter Score comes from the simple question “How likely would you be to recommend our products and services to a friend?”. NPS ranges from -100 to 100 and customers range their willingness of recommendation on the scale of 0-10. Based on their responses, customers will be segregated into Promoters, Detractors, and Passives.
What is a Promoter in NPS
A promoter in NPS is a customer who ranges his/her willingness of recommendation to 9 or 10 and very satisfied with the kind of customer experience you are offering them. Promoters are the repeat buyers, who recommend you as a brand and your product/service to other potential buyers. Promoters are considered to be your brand ambassadors and fuel the growth of your business.
What is a Detractor in NPS
A detractor in NPS is a customer who ranges his/her willingness to the recommendation from 0 to 6 and considered to be very unsatisfied. Detractors are less likely to remain for long and denied to recommend you as a brand and your product/service to other potential buyers. They can even spread bad words of mouth.
What is a Passive in NPS
A passive in NPS is a customer who ranges his/her willingness of recommendation to 7 or 8 and moderately satisfied with the kind of customer experience you are offering them. passive behavior falls between promoters and detractors. They never spread any negative word-of-mouth, but are not enthusiastic enough to promote your product/service.
What is 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. This number can range from -100 to 100.
What are Methods 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
- Calculate Net Promoter Score using Excel
- Calculate NPS using Online Calculator
- Calculate Net Promoter Score using NPS Survey Tool
How to Calculate Net Promoter Score Using Excel?
Say, you've sent NPS Survey with the NPS questions and you've received 200 responses from your customers. To calculate Net Promoter Score in Excel follow the below steps:
- Step 1 - Enter all of the survey responses into an Excel spreadsheet.
- Step 2 - Based on their scale of willingness, segregate the responses into three categories. Promoters (9-10), Detractors (0-6), and Passives (7-8).
- Step 3 - Now add up the total responses from each group and get the percentage by dividing the total number of groups from the total number of survey responses.
- Step 4 - Now, get your NPS score by subtracting the percentage total of Detractors from the percentage total of Promoters.
For Instance: Say if you received 200 responses to your NPS survey:
- 20 responses were in the 0–6 range (Detractors)
- 140 responses were in the 9–10 range (Promoters)
- 40 responses were in the 7–8 range (Passives)
When you calculate the percentages for each group, you get 10%, 70%, and 20% respectively.
Net Promoter Score = % of Promoters - % of Detractors
NPS = 70% - 10% = 60
So, your Net Promoter Score is 60
How to Calculate NPS using Online Calculator?
You can use Net Promoter Score calculator to measure 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 Net Promoter Score Survey Tool, 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.