How is the NPS calculated?

The Net Promoter Score (NPS) is calculated in three simple steps.

First, respondents are divided into three categories based on their ratings: Promoters, Passives and Detractors. Promoters are people who give a rating of 9 or 10, passives rate at 7 or 8, and detractors give a rating of 0 to 6.

How are the percentages of Promoters, Passives, and Detractors determined?

To determine the percentages, first count the number of ratings in each category. Let's say you received 100 ratings, of which 60 were Promoters, 20 Passives and 20 Detractors.

The percentage of promoters is then 60% (60/100 * 100), the percentage of passives is 20%, and the percentage of detractors is also 20%.

How is the NPS score calculated?

To calculate the NPS score, subtract the percentage of detractors from the percentage of promoters. In our example, the percentage of detractors is 20% and the percentage of promoters is 60%.

Therefore, the NPS score is 40 (60 - 20). The NPS score can be between -100 and +100. You can find more information in our NPS calculator.

What does a positive NPS score mean?

A positive NPS score indicates that there are more promoters than detractors. The higher the positive NPS score, the more customers actively recommend your company. A high NPS score indicates high customer satisfaction and loyalty.

What does a negative NPS score mean?

A negative NPS score indicates that there are more detractors than promoters. The lower the negative NPS score, the more customers are dissatisfied and could have negative word of mouth.

A negative NPS score indicates potential for improvement and should be taken as an impetus to optimize the customer experience.

What role do passives play in the NPS calculation?

Passives are not directly considered in the NPS calculation because they are neither actively positive nor negative. They do not have strong opinions about your company.

However, passives are a valuable group because they can potentially be converted into promoters or detractors. It is important to understand their needs and view them as a potential growth opportunity.

Can the NPS score be calculated for different segments?

Yes, the NPS score can be calculated for different segments, such as geographical regions, customer segments or product lines.

This allows companies to identify differences in customer satisfaction between segments and take targeted actions to improve NPS.

How often should the NPS score be measured?

The frequency of NPS measurement can vary by company. Some companies measure NPS continuously, such as monthly or quarterly, to track changes over time.

Others conduct NPS at regular intervals, such as once a year. The frequency of measurement depends on the company's resources, goals, and dynamics.

Should the NPS score be used as the sole measure of customer satisfaction?

Although the NPS score is a useful measure of customer satisfaction, it should not be used as the sole measure. It is important to consider the NPS score in the context of other data and feedback sources, such as detailed survey results, customer comments, and complaints.

This provides a more comprehensive assessment of customer satisfaction and helps identify specific opportunities for improvement.

Conclusion

Calculating NPS is a simple process that helps companies measure and track customer satisfaction. It is important to monitor the NPS score regularly and use it as part of a comprehensive customer experience management system to enable continuous improvement.

Reading recommendation: For more information on calculating the NPS, we recommend our blog article “The Net Promoter Score – Basics and Areas of Application”