NPS or Net Promoter Score: what is it and how can you calculate it?
Posted: Thu Dec 05, 2024 5:02 am
Satisfying our customers is an essential first step to building loyalty and getting recommendations. Therefore, it is very important that we are able to measure how satisfied our customers are with our brand.
The Net Promoter Score or NPS is a very simple metric that has become the gold standard for measuring customer satisfaction. We show you how to calculate it and use it in your business.
Discover the most important digital marketing metrics . The 130 you maldives email address lose sight of! Click here and download the most complete ebook.
Explanatory video on how the Net Promote Score works.
What is Net Promoter Score (NPS)?
The Net Promoter Score or NPS is a metric that measures a company's customer loyalty based on the likelihood of recommendation . Its origins lie in a 2003 article by Frederick F. Reichheld titled The One Number You Need To Grow and published in the Harvard Business Review.
The NPS is based on a single question: “How likely are you to recommend the product or service to a friend or family member?” The answer is given on a scale of 0 to 10: 0 means “I am very unlikely to recommend it” and 10 means “I would definitely recommend it.” Based on their answer, customers are classified into three categories:
From 0 to 6 points: detractors.
7-8 points: passive or indifferent.
9-10 points: promoters.
How is Net Promoter Score calculated?
To calculate the Net Promoter Score, we must follow these steps:
We converted the number of promoters and detractors into percentages, ignoring the passives.
We subtract the percentage of detractors from the percentage of promoters and the result will be in NPS.
The Net Promoter Score or NPS is a very simple metric that has become the gold standard for measuring customer satisfaction. We show you how to calculate it and use it in your business.
Discover the most important digital marketing metrics . The 130 you maldives email address lose sight of! Click here and download the most complete ebook.
Explanatory video on how the Net Promote Score works.
What is Net Promoter Score (NPS)?
The Net Promoter Score or NPS is a metric that measures a company's customer loyalty based on the likelihood of recommendation . Its origins lie in a 2003 article by Frederick F. Reichheld titled The One Number You Need To Grow and published in the Harvard Business Review.
The NPS is based on a single question: “How likely are you to recommend the product or service to a friend or family member?” The answer is given on a scale of 0 to 10: 0 means “I am very unlikely to recommend it” and 10 means “I would definitely recommend it.” Based on their answer, customers are classified into three categories:
From 0 to 6 points: detractors.
7-8 points: passive or indifferent.
9-10 points: promoters.
How is Net Promoter Score calculated?
To calculate the Net Promoter Score, we must follow these steps:
We converted the number of promoters and detractors into percentages, ignoring the passives.
We subtract the percentage of detractors from the percentage of promoters and the result will be in NPS.