When measuring Net Promoter Score (NPS), you are surveying your customers to find out who is happy and who isn’t, by asking a single question.
“Based on your recent experience with this company, please indicate how likely is it that you would recommend our company to a family member, friend or colleague?”
On a scale of 0 to 10, where 0 is not at all likely to and 10 is extremely likely.
Survey respondents then choose a rating on an 11-point scale that goes from 0 (not at all likely) to 10 (extremely likely) and, depending on their response, will fall into one of three categories, establishing the NPS score:
The first category is Promoters.
Promoters respond with a score of 9 or 10. They are typically loyal and enthusiastic customers, promoting your brand, products and services through positive word-of-mouth. Promoters will keep buying from you and will fuel your growth by referring others to you.
The second category is Passives.
Passives respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters. Passives are unenthusiastic customers who sit on the fence in terms of customer loyalty and they could be tipped either way based on something small. They could easily become detractors and equally a small improvement could convert them into a promoter. Passive customers are also vulnerable to switching to competitors.
The third category is Detractors.
Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you, by spreading negative word-of-mouth about your brand, products and services. Detractors can damage your brand and impede your growth. These customers are very open to competitive offers and could be actively planning to leave you and will encourage others to follow their lead.
So How Do You Calculate Your Net Promoter Score?
Net Promoter Score is calculated by taking the percentage of Promoters in your survey and subtracting the percentage of Detractors. This number is your NPS figure. NPS can be a whole number between -100 and +100.
Here’s an example:
Let’s say 1,000 customers take the NPS survey and results show the following.
- 40% of your customers are Promoters (i.e. they scored your company a 9 or 10)
- 50% of your customers are Passives (i.e. they scored your company a 7or 8)
- 10% of your customers are Detractors (i.e. they scored your company a 0, 1, 2, 3, 4, 5 or 6)
Net Promoter Score (NPS) = (% Promoters) – (% Detractors)
NPS = 40% (PROMOTERS) – 10% (DETRACTORS) = 30 (note you drop the %)
Your NPS is +30
Remember your NPS score can be any score between +100 and -100.
For instance an NPS of 0 (zero) means you have the same percentage of customers who are promoters as detractors, meaning you have the same number of customers who love their experience, as the number of customers who hate their experience!
It is interesting to me how an NPS score of zero, boils down a very complex reality for any business into one simple to remember number.
To learn more or if need some help to implement Net Promoter into your company or take it to the next level, then please reach out and click above on our Free Consultation meeting request and we would be delighted to hear more about you, your plans and how Resonation can help!