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 customer relationships. It serves as a proxy for customer satisfaction and is a strong indicator of growth potential. Developed by Fred Reichheld, Bain & Company, and Satmetrix, NPS is based on a single question: "How likely are you to recommend [Company/Product/Service] to a friend or colleague?"
How NPS Works
Customers respond to the recommendation question on a 0-10 scale, where 0 is 'not at all likely' and 10 is 'extremely likely'. 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 Calculation
The Net Promoter Score 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 factor into the score itself.
NPS = (% Promoters – % Detractors)
The score ranges from -100 (if all respondents are Detractors) to +100 (if all respondents are Promoters).
Interpreting Your NPS Score
A "good" NPS score can vary by industry, but generally:
- Above 0: Considered "good" as you have more Promoters than Detractors.
- Above 50: Considered "excellent."
- Above 70: Considered "world-class."
It's often more valuable to track your NPS over time and compare it against industry benchmarks rather than focusing on a single absolute number.
Using the NPS Calculator
Our NPS calculator simplifies the process of determining your score. Simply input the number of respondents you've identified for each category:
- Number of Promoters: Enter the count of customers who gave a score of 9 or 10.
- Number of Passives: Enter the count of customers who gave a score of 7 or 8.
- Number of Detractors: Enter the count of customers who gave a score of 0 to 6.
Click "Calculate NPS," and the tool will instantly provide your Net Promoter Score.
Example Scenarios:
Let's consider a survey with 100 respondents:
- Scenario 1: Strong Performance
Promoters: 60
Passives: 20
Detractors: 20
Total: 100
Calculation: ((60 – 20) / 100) * 100 = 40
NPS: 40 (A good score, indicating healthy customer loyalty.) - Scenario 2: Room for Improvement
Promoters: 30
Passives: 40
Detractors: 30
Total: 100
Calculation: ((30 – 30) / 100) * 100 = 0
NPS: 0 (Indicates an equal number of Promoters and Detractors, suggesting a need to improve customer experience.) - Scenario 3: Negative Score
Promoters: 10
Passives: 30
Detractors: 60
Total: 100
Calculation: ((10 – 60) / 100) * 100 = -50
NPS: -50 (A low score, signaling significant customer dissatisfaction and potential churn.)
By regularly calculating and analyzing your NPS, you can gain valuable insights into customer sentiment and identify areas for improvement to foster stronger customer relationships and drive business growth.