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Learn How to Use Net Promoter Score (NPS) Formula

Learn how Net Promoter Score formula is used to measure customer satisfaction and customer loyalty

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How are you doing with your customer experience? Good, bad, not sure? When you talk about customer experience the first thing that comes to your mind is the Net Promoter Score. Some organizations and businesses might still be struggling to understand where they stand on a scale of 1-10 in terms of NPS score.

Net Promoter Score (NPS) is proven to measure customer satisfaction and also beyond that. But what lies beyond customer satisfaction? Customer loyalty! To be more specific customer loyalty that comes with organic brand recommendations. Using the Net Promoter Score formula, you can calculate and know where do you stand in terms of customer satisfaction and customer loyalty.

Apart from effectively and numerically measuring your customer loyalty, do you know what else is great about NPS? You just need to ask one question in your NPS survey! That’s right, the entire measurement of your customer satisfaction, loyalty, and organic brand sharing is achieved in just one question:

On a scale from 0-10, how likely are you to recommend (organization name) to your friends/ family/ business associate?

Respondents who have given you a score 6 or below are Detractors, 7-8 are Passives and 9-10 are Promoters.

Net Promoter Score (NPS) formula

Using Net Promoter Score Formula to calculate Net Promoter Score?

The Net Promoter Score formula helps you calculate the NPS for your organization. It is a time-tested tool and is widely used. There are other formulae like Customer Satisfaction (CSAT) and Customer Effort Score (CES) to measure customer satisfaction. But NPS goes a step beyond and measures customer loyalty.

But before we go any further we first need to know the Net Promoter Score Formula.

(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100

Let us use the Net Promoter Score formula in the following example.

Suppose you have sent out the NPS question to your survey respondents and you have received 100 responses.

Calculating the percentage of each group 10%, 20% and 70% respectively.

Using these responses in the Net Promoter Score formula: 70 -10/100*100= 60%

Please note that NPS is never calculated in percentage, it is always an integer, therefore the NPS in this particular example is 60.

Important role of Passives in Net Promoter Score formula, calculation and post NPS measurement actions

Often when we talk about NPS we pay more attention to the Detractors and the Promoters. Sometime we might even go to an extent of saying, “you can set aside the passive.”

But that’s not quite true! The fact is we cannot really leave aside the Passives. To calculate the percentage of Detractors and Promoters we need the percentage of Passives. The good news is you don’t have to take drastic steps to reach out to the Passives as you would do for the detractors.

Passives is the group that neither hate your brand nor love it. But they are closer to Promoters and a little effort on your end could push them to be the promoters because they do not think negative about your brand. They simply don’t have an unequivocal opinion about your brand or services. Unlike the detractors, who can spread a negative word of mouth like a jungle on fire!

With QuestionPro unique Detractor recovery feature you can now take immediate action through automated response whenever you receive any negative feedback. This helps to promote excellent customer service thus reducing the number of detractors.