What is Net Promoter Score Calculation?
When was the last time you liked a brand so much you recommended it to your friend and wanted them to try it out?
If you have ever done so, you understand the basic principle of Net Promoter Score, that it is used for measuring customer satisfaction.
NPS not only helps you measure customer satisfaction but also customer loyalty. It tests if someone likes your brand, organization, products or services that they recommend it to their family, friends, and colleagues.
How does the Net Promoter Score Calculation Formula work?
To start with your the customers or consumers are asked to rate their chances to recommend an organization or a business to their family, friends or colleagues on a 0-10 point scale. The customer has to choose one number between 0-10 (where 0 being the lowest and 10 being the highest)
Based on the number chosen on the scale the customer is then classified as Detractors, Passives, and Promoters.
0-6 are Detractors (least likely to recommend your brand, in fact, might spread a negative word of mouth)
7-8 are Passives (May or may not recommend your brand, may even sway away to your competitors)
9-10 are Promoters (Loyal! They will absolutely recommend your brand)
Net Promoter Score Calculation for your organization
Let us assume you have sent out an online survey with NPS question to your survey respondents. You have received 100 responses from your customers. Let’s break down these responses.
NPS Formula: (Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
You have received a total of 100 responses:
- 10 responses were in the 0–6 range (Detractors)
- 30 responses were in the 7–8 range (Passives)
- 60 responses were in the 9–10 range (Promoters)
When you calculate the percentages for each group, you get 10%, 30%, and 60% respectively.
Using the NPS formula: 60-10/100 *100= 50
Net Promoter Score is always shown as a whole number and never as a percentage. Hence your NPS is 50.
Don’t be surprised if you have a negative NPS because the range is from -100 to +100.
Net Promoter Score Calculation: QuestionPro way.
One of the key attributes of NPS calculation os to check how varying is it over a period of time. This requires graphical representation of the statistical data. The insights can be collected using NPS survey, with time as a variable.
The QuestionPro NPS Survey Dashboard is the most advanced analytics platform for NPS measurement. It provides real-time and detailed NPS Value charts and graphs as they vary over time.