Net Promoter Score Calculation

Understand your customer satisfaction levels over time, and build loyal relationships

The heart of your LoyaltyLoop service is the ability to continually measure your customer satisfaction levels using the time-proven Net Promoter Score (NPS) metric. Your goal is to use this data to improve your business and increase the number of loyal customers for your business and your brand. From your dashboard you'll be able to view which customers are happy and satisfied ("Promoters"), which are on the fence ("Passives") and which are not satisfied ("Detractors"). Armed with this info you'll be in position to take corrective actions to help convert Passive and Detractor customers into loyal Promoter customers.

net promoter score

What is Net Promoter Score (NPS)?

Net Promoter Score, or NPS, is an industry-standard measurement of customer experiences and predictor of future business performance. The metric is based on how customers answer the following question.

The NPS question is designed to test the emotional connection between your customer and your business (or brand). While some people read the question too literally, it is not asking your customer to make a recommendation now, but rather whether they feel positive enough about your business where they would make a recommendation, should someone ask.

How likely is it that you would recommend [brand or company] to a friend or colleague?

How is NPS calculated?

Net Promoter Score is calculated using the below formula, and products a score that is a whole number between -100 to +100, where +100 is the best score. Notice how NPS does not consider Passive customers, those customers who are on the fence in terms of their feelings about recommending your business to others. While NPS does not consider Passive customers, you should. Work to earn higher marks from Passive customers to turn them into Promoters.

NPS = [ (Promoters - Detractors) / Total NPS Respondents ] x 100

Examples:

-100

NPS

0 Promoters, 0 Passives, 50 Detractors

NPS = (0 - 50) / 50 x 100

+100

NPS

50 Promoters, 0 Passives, 0 Detractors

NPS = (50 - 0) / 50 x 100

+41

NPS

50 Promoters, 20 Passives, 15 Detractors

NPS = (50 - 15) / 85 x 100

What's a good Net Promoter Score rating?

A NPS that is greater than 0 is considered OK. Any score below 0 means you've got work to do to improve customer satisfaction. In general, your goal is to strive to the highest NPS possible.

Every industry is different. It is best to compare your NPS to your peers and industry for a more relevant indication of your specific performance.

While some of us are over-achievers and we must get that 100 score, it is important not to fixate on just the metric. Listen to your customer's feedback, and take to heart their experiences both good and bad. If you're growing and learning by understanding your NPS, you're using it correctly.

-100 to 0
Poor
1 to 49
Ok
50 to 69
Good
70 to 100
World Class

What are common Net Promoter Score scales?

There are several scales used with NPS questions, from the traditional 11-point numerical scale ranging from 0 to 10, the simplified 5-phrase scale from Very Unlikely to Very Likely, to the very simple 3-icons. There are pros and cons to each scale. What is important is you choose a scale, and stick with it. When you constantly change scales, context can be lost rendering historical comparisons of NPS difficult.

NPS Category Traditional
11-Point Scale
Simplified
5-Phrase Scale
Basic
3-Icon Scale
Promoters 10 Very Likely
9
Passives 8 Likely
7
Detractors 6 Not Sure
5
4 Unlikely
3
2 Very Unlikely
1
0

Pros/Cons

Traditional 11-Point Scale: PRO: Customers who won't ever give a top score can give a 9, which is still a Promoter. Use of 0 is hard for customer to confuse with a 'good' rating, hence minimizes incorrect choice. CON: More granular choices makes it harder on respondent.

Simplified 5-Phrase Scale: PRO: Fewer choices makes it easier on the respondent. CON: Happy customers who never give top scores are grouped as Passive.

Basic 3-Icon Scale: PRO: Very simple on the respondent.CON: No granularity makes it hard to determine the degree to which a customer is (or is not) satisfied.

Want to know more?

Here's a short video explaining How To Interpret NPS.

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LoyaltyLoop: How to Interpret NPS from LoyaltyLoop on Vimeo.

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Net Promoter, Net Promoter System, Net Promoter Score, and NPS are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. LoyaltyLoop and SurveyAdvantage are registered trademarks of LoyaltyLoop, LLC. All other marks are the property of their respective owners. All rights reserved.

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