Net Promoter Score!
Net Promoter Score (NPS) is a metric that measures customer’s loyalty and product or customer service satisfaction.
It is predicated on a straightforward question:
“On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?”
The respondents are then divided into three categories
Promoters (9–10): Customers who are highly satisfied and likely to recommend your product/service.
Passives (7–8): Satisfied customers who are less effusive than promoters.
Detractors (0–6): Customers who are dissatisfied with your product or service and could potentially speak negatively about it.
A higher NPS indicates greater consumer loyalty and an increased likelihood of positive word-of-mouth recommendations.
Typically, only one question is asked in Net Promoter Score (NPS) surveys to measure consumer loyalty and satisfaction. Typically, this primary query is followed by an optional open-ended question for additional feedback. Here’s what you ought to inquire:
“On a scale of 0 to 10, how likely are you to recommend [Your Company/Product/Service] to a friend or colleague?”
“What is the primary reason for your score?” is a follow-up question that is optional. Alternatively, “What could we do to improve your rating?”
These inquiries are intended to reveal customer sentiment and the reasons for their likelihood to recommend or not recommend. The follow-up query facilitates the collection of additional context and actionable feedback for improvement.
How to calculate ?
A simple formula is used to calculate the Net Promoter Score (NPS) from the responses to the primary NPS query. Here’s how to figure it out:
Collect Responses:
Obtain responses to your NPS questionnaire. Each response should be accompanied by a numeric rating between 0 and 10, where 0 indicates “Not at all likely” and 10 indicates “Extremely likely.”
Calculate the percentage of respondents that fall into each category:
Percentage of Promoters (P) = (Number of Promoters / Total Number of Respondents) * 100
Percentage of Passives (Pa) = (Number of Passives / Total Number of Respondents) * 100
Percentage of Detractors (D) = (Number of Detractors / Total Number of Respondents) * 100
Subtracting the percentage of detractors from the percentage of promoters yields the Net Promoter Score.
NPS Score = Proportion of Promoters minus Proportion of Detractors
The final NPS score can range between -100 and 100.
A positive score indicates that there are more promoters than detractors, indicating that customer sentiment is positive.
A negative ranking indicates a greater number of detractors, highlighting areas for development.
Example:
Suppose you have 100 respondents, including 60 promoters, 20 passives, and 20 detractors.
P = (60 / 100) * 100 = 60%
Pa = (20 / 100) * 100 = 20%
D = (20 / 100) * 100 = 20%
NPS Score = P minus D = 60 minus 20 = 40
In this example, the NPS score is 40, indicating that respondents are satisfied.
Hope this is helpful!
