Want to know how likely customers are to recommend your business? A way to that isNet Promoter Score (NPS)a powerful research metric for businesses to measurecustomer complaints, and positive feedback and predict growth. A good score in NPS indicates trust and growth on both sides. This blog introduces you to NPS, how to calculate it and its need in your business to maximize NPS and convert satisfied customers into growth guides.
Net promoter score
What Is Net Promoter Score (NPS)?
As a research metricNet Promoter Score (NPS)assesses customer satisfaction and loyalty based on single-question responses. Which is “How likely are you to recommend this product/service to others?” This metric was first introduced in 2003 by Bain & Company by categorizing respondents intoPromoters (score 9-10) , Passives (score 7-8), иDetractors (score 0-6)and analyzing responses.
NPS is a way to quickly measure how likely customers are to recommend a business to others. This helps businesses understand customer satisfaction and loyalty, and improve areas where customers are unhappy. Many companies use NPS to make better decisions and improve customer experience. It is an easy and useful tool to help businesses grow.
How to Calculate Net Promoter Score (NPS)?
To know how to calculate net promoter score you need to understand one simple question. The core of NPS lies in a single, straightforward question posed to customers: “How likely are you to recommend our product/service to a friend or colleague?” This question telegram database users list is designed to capture the essence of customer loyalty and satisfaction. Customers respond on a scale of 0 to 10, where 0 means ‘not at all likely’ and 10 means ‘extremely likely .’
Scoring System
Responses to the NPS question are categorized into three groups:
Promoters (9-10):These customers are loyal enthusiasts who will keep buying and referring others, fueling growth.
They are vulnerable to competitive offerings.
Detractors (0-6):These customers are unhappy and can damage the brand through negative word-of-
Collect Responses: Gather all customer responses to the NPS question
Categorize Respondents: Identify the number of promoters, passives, and detractors.
Calculate Percentages: Determine the percentage of promoters and detractors among the respondents.
Compute NPS: Subtract the percentage technical website optimization of detractors from the percentage of promoters. The formula is:
Net Promoter Score Formula
Net promoter score
Here is a step-by-step breakdown:
Step 1: Calculate the Percentage of Promoters
Divide the number of Promoters by the total number of respondents.
Multiply the result by 100 to get the percentage of Promoters.
Step 2: Calculate the Percentage of Detractors
Divide the number of Detractors by the total number of respondents.
Multiply the result by 100 to get the percentage of Detractors.
Step 3: Subtract the Percentage of Detractors from the Percentage of Promoters
Subtract the percentage of Detractors from the percentage of Promoters to get the NPS.
The resulting NPS score will range from -100 to 100. An NPS above 0 is generally considered good. Above 50 is excellent, and above 70 is exceptional.
Benefits of Using Net Promoters Score (NPS)
Net Promoter Score (NPS) offers a clear space atb directory into customer loyalty by identifying promoters, passives, and detractors. Businesses can calculate overall customer sentiment and loyalty. By understanding the distribution of these groups. Which are critical indicators of long-term success. The following points are discussed below as the benefits of using NPS.
Actionable Feedback
One of the significant advantages of NPS is its ability to generate actionable feedback. The follow-up question, ‘What is the primary reason for your score?’allows customers to provide qualitative feedback that highlights specific pain points and areas of excellence. This detailed feedback helps businesses identify and address issues promptly, improving customer satisfaction and loyalty.
