How To Calculate NPS
The beauty of NPS is its simplicity. No complex mathematical formulae are needed here! This section explains how to calculate NPS score that accurately reflects what your customers feel. Check out the Ultimate Guide to NPS.
Although calculating NPS is very easy to do, you should not underestimate its power to change your business. One of the things that makes NPS so powerful is that it is automated and non-judgemental. Sooner or later you’ll need real data coming in to make a score out of. Get up and running in no time using the Customer Thermometer free trial.
Set Up Your NPS Survey Today Create a free Customer Thermometer account (No credit card required – Fully functional account). Set up an NPS survey and discover why over 10,000 teams choose CT to track, measure and improve their NPS program.
What is NPS?
NPS stands for ‘Net Promoter Score®’. It measures how much loyalty the person you asked has to your brand. Or put another way, it’s a customer loyalty metric. Many thousands, if not millions, of organizations use NPS. It all stems from asking customers a simple, single question along the lines of:
On a scale of 0-10, how likely are you to recommend X (to a friend or colleague)?
All the responses received to this question get used to arrive at an overall score, representative of the loyalty of your customers. As new responses come in, the NPS score can be recalculated and will show fluctuations and trend over time. Below will show you how to calculate NPS score.
How To Calculate NPS score?
Calculating NPS begins once you’ve gathered the results from the NPS survey you’ve set up. Specifically, the main ‘NPS question’ on a scale of 0–10. There are 11 response options in total (the 11th is zero!). Each NPS survey response should be a single selection of one of these options. Depending on which response has been selected on the NPS rating scale, you can assign each of your results to one of 3 groups:
- Promoters: responses of 9 or 10
- Passives: responses of 7 or 8
- Detractors: all other responses (i.e. from 0–6)
Do this for all NPS responses you’ve received (it helps to have a cut-off point for each calculation). Here on in, the precise numbers people have selected are irrelevant. The only thing that matters is the category each individual’s response qualifies for.
These are the likeliest advocates – they are the most loyal, they profess to recommend you and spread positive word of mouth. Promoters are those that responded with either a 9 or 10.
In the middle between positive and negative about you – their neutrality doesn’t threaten to undermine you but they aren’t jumping up and down to recommend you or be particularly loyal either. Passives are those that responded with either a 7 or 8.
bad news – these individuals are the polar opposite of promoters and most likely to share negative experiences to others and be disloyal. Detractors are those that responded with anything below a 6. It may seem harsh that even a 6 would be deemed a detractor, but that is what makes NPS such a pure metric.
NPS Score Calculation Example
Next, you need to calculate each group as a proportion of the whole. So if 2 out of 10 classify as promoters, mark that down as 20%. Record each proportion as a percentage and check that all three groups total 100%.
- Promoters = 40%
- Passives = 50%
- Detractors = 10%
‘Passives’ are neutral, so should be removed from any further calculations. You should have 2 figures left over, in our example 40% (promoters) and 10% (detractors). You subtract the percentage of detractors from the percentage of promoters – hence “net promoters”. The product of your sum should be written as a plain number (with no percentage sign at the end).
- 40% – 10% = 30
This figure is greater than 0, in which case it should be expressed with a + sign in front of it (+30). It’s not a big deal if you don’t. It just makes it easier to compare against negative NPS ratings (e.g. -30) without things getting messy or complicated.
What will a final NPS score calculation look like?
Every NPS score will check out between –100 and +100. It’s impossible to fall out of that range. If you do, there’s nothing wrong with your raw NPS data – you’ve just done the calculation wrong so go back and retry.
- A score of –100 means that every response you got rated as a detractor. This is the worst of the worst.
- A score of +100 means every response was a promoter. This is the dream many companies realise when they start taking NPS seriously. See how to improve your NPS score.
How To Calculate NPS® Using 4 Icons
We would then assign the 0-10 scale across our 4 point ratings scale in the following way:
- Promoters: responses of 9 or 10 (GOLD)
- Passives: responses of 7 or 8 (GREEN)
- Detractors: all other responses (i.e. from 0–6)
We also offer the option to use a full NPS scale using 11 (0-10) individual icons instead of four as shown above if you’d like to use a dedicated NPS question.
This is how you unlock that feature within your Customer Thermometer account
How To Enable Full Net Promoter® Score Functionality
Click “Settings” on the top navigation menu, then open the Net Promoter Score menu.
Enable NPS by choosing “yes” from the dropdown and click the green “Save NPS Settings” button.
This will enable NPS reporting on your main dashboard, each of your Blast breakdown screens and your Thermometer set up screens.
Should I publicize my NPS score?
Lots of organizations publicise their NPS scores. You would be in good company if you chose to publicize yours too.
The main 2 reasons many companies choose to publicise their NPS score:
Using a good NPS score as validation for customer success
- If you’ve got it, flaunt it! Promoting your NPS score in marketing and advertising is powerful. It shows individual customers what ‘all’ customers think. This is more effective at attracting new customers than retaining existing ones. Quite simply, existing customers already know their own opinion and are unlikely to be influenced to change it by learning the opinions of other existing customers.
- There are two risks with this approach. The first is crowing about having a good NPS score (e.g. +28) when in fact it is quite average or low for your business sector. Therefore, exercising a certain amount of humility in showing your NPS scores is a good call. For example, showing how grateful to your customers you are for achieving this score and how committed you are to striving for even better. The other risk is that your high NPS score declines to a middling or low NPS score. Your market is entitled to wonder why you don’t shout about NPS any more, and draw their own conclusions. Again, the manner in which you present your NPS score is crucial in case of how it might change in the future. Learn more about improving your NPS score.
- Organizations that commit themselves to a culture of openness and transparency will be attracted to the idea of publishing their NPS score. By doing this in a ‘matter-of-fact’ way, customers can respect your honest intentions – even if the NPS score isn’t particularly good. In a roundabout way, this approach is clever marketing. You are showing how committed you are to what customers think by exposing ‘sensitive’ information. The inference being that no business would allow their NPS level to drop below an acceptable benchmark because that benchmark is known to everyone.
- However, once you’ve started down this path you really have to stick with it. It will reflect very poorly if you stop publishing your NPS score because it has fallen below a certain level.
In conclusion, there are valid reasons for publishing your NPS score, regardless of what that score is or becomes. The best advice is to be humble and ‘matter-of-fact’ about how you present NPS information. Don’t get too carried away and don’t assume it won’t move up or down.
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