Net promoter score (NPS) is a powerful tool for gathering invaluable insights into how your brand and the experience it delivers are perceived. Understanding the formula associated with NPS and, more importantly, how to accurately calculate your score will help you better understand your customer or employee experience.
A net promoter score is a specific metric that highlights the overall performance of your customer or employee experience. The score is based on your customer’s likelihood to recommend your product, service, or organization.
NPS was developed so that companies could more easily quantify otherwise qualitative responses — it’s difficult to pull data from an emotion, right? Yet, emotion can be a powerful indication of your company’s ability to make customers happy. NPS makes this process possible by attributing emotions to certain outcomes, such as:
To calculate NPS, you take the total percentage of promoters (those who would likely recommend your company) and subtract the total percentage of detractors (those who aren’t likely to recommend your company). The result is your net promoter score.
Confused on how to find the total percentage of both promoters and detractors? Let’s dive in.
Net promoter scores are based on a scale, from -100 to 100, with 100 being the ideal score, meaning 100% of people would likely recommend your company. Let’s learn how to efficiently and accurately calculate where you are on the NPS scale.
The NPS formula is rooted in a single question — one most people have encountered during experiences with websites, retail brands, and more:
On a scale of 1-10, how likely would you be to recommend this company, product, or service to a friend?
The NPS formula delivers variations of the above sentence in a given NPS survey and has participants quantify their emotion on a scale of 1–10.
Variations of NPS questions may include:
A best practice is to create a survey composed of similar questions. Aim to create targeted questions that are specific to a certain service experience, particular product, or experience had by a certain industry. This will help you uncover targeted responses and specific experiences.
Participants give each question on your NPS survey a score on a scale of 1–10. Based on the number they provide, they will be categorized into one of three categories:
From here, you will be able to understand how many promoters and detractors you have to accurately calculate your NPS.
In order to calculate your NPS, you need to find the percentage of promoters and detractors. Simply factor in the amount of promoters (those who provided a score of 9–10) against the total number of respondents. Be sure to turn decimals into percentages to make the formula easier.
Similarly, factor in the amount of detractors (those who provided a score of 0–6) against the total number of respondents. This will provide your total percentage of detractors.
Lastly, plug in your promoter and detractor percentages into the net promoter score formula.
For example, if you surveyed 100 people and you had 70% promoters and 10% detractors, your NPS formula would look something like this:
Your final NPS would be 40, on a scale from -100 to 100.
You can’t accurately calculate your net promoter score without a sizable amount of responses to translate into the respective promoter and detractor buckets. Build a survey that customers are likely to respond to in order to effectively gather information.
Developing a survey that customers want to respond to can provide another tool in your repertoire of methods for measuring customer loyalty and promoting customer acquisition and retention long-term.