Net Promoter Score (NPS)

What is Net Promoter Score (NPS)?

Net Promoter Score is a measure used to gauge customer loyalty, satisfaction, and enthusiasm about a company.

You calculate it by asking customers to rate, on a scale from 0 to 10, how likely they are to recommend the company’s product or service to others. Z These scores are collected through website pop-ups or email surveys.

You can calculate NPS with this formula:

NPS = (% Promoters) – (% Detractors)

Here:

• Promoters are those who gave scores of 9-10. They’re loyal and are most likely to promote your brand.
• Detractors are those who gave 6 or lower. They’re unhappy with your service and less likely to avail of it again.

Note: People who gave a score between 7-8 are considered as passives. They’re satisfied with your service but are unlikely to recommend it to others.

For example, let’s say you received 60 survey scores, and they’re divided as follows:

• Promoters: 55%
• Detractors: 15%
• Passives: 30%

NPS = 55%-15% = 40

Why You Should Measure NPS

NPS can be a driving metric for business growth and development.

It helps businesses improve their service, customer support, delivery, and more, for increased customer loyalty.

A high NPS shows that a company has a healthy relationship with its customers. These customers are likely to express their satisfaction regarding a company’s services among their circle of friends and relatives — creating a positive growth cycle for your business.

However, calculating NPS isn’t enough to get a complete picture of your company’s stand among the customers.

Along with the survey, you also need to:

• Ask follow-up questions to understand why they gave the specific score.
• Track score over time, creating internal benchmarks.
• Use positive feedback to encourage employees.