Net Promoter Score (NPS) and How to Calculate it?
How loyal are your customers?
What is Net Promoter Score?
Net Promoter Score (NPS) is a metric specifically developed to measure customer loyalty, judging by a customer’s likelihood to recommend a product to others. The NPS survey is specifically centered around the question: “How likely is it that you would recommend Company to a friend or colleague?”
Customers can then respond on a scale from 1 (very unlikely) to 10 (very likely). Those responses separate customers into three categories:
Detractors (score 0-6),
Passives (score 7-8), and
Promoters (score 9-10).
How likely is it that you would recommend Pisano to a friend or colleague?
Promoters
Promoters are the ones who boost profits as long-term customers and are more likely to refer your company. They are a great source of testimonials, reviews and future referrals.
Passives
Passives are, as the name suggests, those that don't really care. Their experience with your company, product, or service is neither positive nor negative enough to influence their behavior.
Detractors
Detractors are customers whose experience with your business was mostly negative. Without proper handling, detractors can go on to churn, leave bad reviews and cause the negative word of mouth.
Calculating Net Promoter Score
The total NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
Net Promoter Score ranges from -100 (very bad) to +100 (very good). At one end of the spectrum, if all customers gave a score equal to or lower than 6 when surveyed, this would result in an NPS of -100. At the other end of the spectrum, if all customers answer the question with 9 or 10, the total Net Promoter Score will be 100.
NPS Formula:
(Number of Promoters - Number of Detractors)/ Number of Participants x 100
NPS Score
NPS Score Trend
CX Metrics