3 Ways to Calculate NPS and What to Do Next
Posted: Wed Dec 04, 2024 3:46 am
How to get started with NPS calculation?
The Net Promoter Score is everywhere. It is one of the most popular customer satisfaction metrics.
This blog presents three ways to calculate the Net Promoter Score, from pencil and paper to using special tools.
We'll also look at how to interpret the results you get, and what to do based on the specific results you get.
NPS Basics
The Net Promoter Score (NPS) is a widely used customer satisfaction metric. Here's an overview of how the Net Promoter Score works.
The customer is asked the question: “How likely would you be to kenya phone number list recommend [company/product/service] to a friend or colleague?”
The client gives his response on a scale of 0 to 10.
Based on your response, they are divided into the following categories:
Promoters (9-10)
Passives (7-8)
Detractors (0-6)
We will discuss the categories in detail later in the blog.
The final result is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
In other words, your haters and fans are the ones that count. Passives are not taken into account when calculating the overall NPS score.
The result you get is an overall score between -100 and 100.
NPS formula
Here's an example: If 30% of your customers are Promoters, and 20% are Detractors, your overall NPS score would be 10.
This is how the NPS formula is calculated in a nutshell. We will see how to do it step by step in the next section.
Whether a Net Promoter Score result is good depends on your industry .
Generally speaking, if it is above 0 it is considered good, since it means that you have more satisfied customers than dissatisfied ones.
If you get a score above 30, you're doing great!
Understanding Promoters, Passives, and Detractors
What to think about the three categories of customers?
How do they affect your business?
How to react to them?
Let's answer these questions.
Promoters
Promoters are the most satisfied and loyal customers you have.
By answering your NPS survey with a score of 9 or 10, they are telling you that they are willing to recommend your company.
Don't miss the opportunity to encourage them to do so! Let your Promoters promote your company.
There is an easy way to do this.
By connecting your NPS survey with a request for a testimonial , you'll take advantage of that moment when your satisfied customer is most likely to give you a recommendation.
Recommendations from your satisfied customers can go a long way in acquiring new customers.
Promoters have a big impact on new customers
Promoters are likely to continue buying from you. They can develop brand loyalty and are not likely to switch to doing business with another company.
Take good care of your loyal customers, and you'll experience a great ROI in customer lifetime value.
Liabilities
Passive employees aren't just dissatisfied, but they aren't loyal to your company either.
They don't have any major complaints, but they may go elsewhere to do business if they see a better offer or opportunity.
You should try to keep the passives on your side and listen to their feedback.
The transition from passive to promoter is not that difficult if you play your cards right.
With a little personalized attention and dialogue with these types of clients, you will get good results.
Special mention : Sometimes the line between a Promoter and a Passive can be blurry. For example, cultural differences can influence how people respond to NPS surveys.
It has been suggested that NPS outcomes in Europe should be measured differently.
While in the United States 7 and 8 are considered passive scores, in European countries an 8 can be considered very good.
So the EU-NPS would look something like this:
The Net Promoter Score is everywhere. It is one of the most popular customer satisfaction metrics.
This blog presents three ways to calculate the Net Promoter Score, from pencil and paper to using special tools.
We'll also look at how to interpret the results you get, and what to do based on the specific results you get.
NPS Basics
The Net Promoter Score (NPS) is a widely used customer satisfaction metric. Here's an overview of how the Net Promoter Score works.
The customer is asked the question: “How likely would you be to kenya phone number list recommend [company/product/service] to a friend or colleague?”
The client gives his response on a scale of 0 to 10.
Based on your response, they are divided into the following categories:
Promoters (9-10)
Passives (7-8)
Detractors (0-6)
We will discuss the categories in detail later in the blog.
The final result is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
In other words, your haters and fans are the ones that count. Passives are not taken into account when calculating the overall NPS score.
The result you get is an overall score between -100 and 100.
NPS formula
Here's an example: If 30% of your customers are Promoters, and 20% are Detractors, your overall NPS score would be 10.
This is how the NPS formula is calculated in a nutshell. We will see how to do it step by step in the next section.
Whether a Net Promoter Score result is good depends on your industry .
Generally speaking, if it is above 0 it is considered good, since it means that you have more satisfied customers than dissatisfied ones.
If you get a score above 30, you're doing great!
Understanding Promoters, Passives, and Detractors
What to think about the three categories of customers?
How do they affect your business?
How to react to them?
Let's answer these questions.
Promoters
Promoters are the most satisfied and loyal customers you have.
By answering your NPS survey with a score of 9 or 10, they are telling you that they are willing to recommend your company.
Don't miss the opportunity to encourage them to do so! Let your Promoters promote your company.
There is an easy way to do this.
By connecting your NPS survey with a request for a testimonial , you'll take advantage of that moment when your satisfied customer is most likely to give you a recommendation.
Recommendations from your satisfied customers can go a long way in acquiring new customers.
Promoters have a big impact on new customers
Promoters are likely to continue buying from you. They can develop brand loyalty and are not likely to switch to doing business with another company.
Take good care of your loyal customers, and you'll experience a great ROI in customer lifetime value.
Liabilities
Passive employees aren't just dissatisfied, but they aren't loyal to your company either.
They don't have any major complaints, but they may go elsewhere to do business if they see a better offer or opportunity.
You should try to keep the passives on your side and listen to their feedback.
The transition from passive to promoter is not that difficult if you play your cards right.
With a little personalized attention and dialogue with these types of clients, you will get good results.
Special mention : Sometimes the line between a Promoter and a Passive can be blurry. For example, cultural differences can influence how people respond to NPS surveys.
It has been suggested that NPS outcomes in Europe should be measured differently.
While in the United States 7 and 8 are considered passive scores, in European countries an 8 can be considered very good.
So the EU-NPS would look something like this: