Net Promoter Score (NPS) Calculator
Understanding the Net Promoter Score (NPS)
The Net Promoter Score (NPS) is a widely used management tool that can be used to gauge the loyalty of a company's customer relationships. It serves as a proxy for customer satisfaction and is a strong indicator of growth potential.
How NPS is Calculated
NPS is derived from a single survey question: "How likely are you to recommend [Company/Product/Service] to a friend or colleague?" Respondents rate their likelihood on a scale of 0 to 10.
Based on their responses, customers are categorized into three groups:
- Promoters (Score 9-10): These are loyal enthusiasts who will continue to buy and refer others, fueling growth.
- Passives (Score 7-8): These are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
- Detractors (Score 0-6): These are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Passives are included in the total number of respondents but do not directly impact the score.
NPS = (% Promoters) – (% Detractors)
Why NPS Matters
A high NPS indicates strong customer loyalty, which often translates to repeat business, positive referrals, and sustainable growth. It provides a simple, actionable metric that can be tracked over time to assess the effectiveness of customer experience initiatives.
Interpreting Your NPS Score
NPS scores can range from -100 (if every customer is a Detractor) to +100 (if every customer is a Promoter). Generally, a score above 0 is considered good, above 50 is excellent, and above 70 is world-class. However, what constitutes a "good" NPS can vary significantly by industry.
Example Calculation
Let's say you surveyed 100 customers and received the following responses:
- Promoters: 60 customers (score 9-10)
- Passives: 20 customers (score 7-8)
- Detractors: 20 customers (score 0-6)
Using the formula:
- Percentage of Promoters = (60 / 100) * 100 = 60%
- Percentage of Detractors = (20 / 100) * 100 = 20%
NPS = 60% – 20% = 40
In this example, your Net Promoter Score would be 40. You can use the calculator above to quickly determine your NPS based on your own survey results.