There are many easy ways to calculate your Net Promoter Score and gain valuable insight into the customer experience.
In the business world, customer satisfaction and customer retention are the keys to success, and that’s where Net Promoter Score (NPS) comes in.
NPS is a widely-used metric measuring customer loyalty by asking, “How likely are you to recommend our product/service to a friend or colleague?” The answer is given on a scale of 0 to 10, with 0 being “not likely at all” and 10 being “extremely likely.”
By calculating the NPS score, companies can quickly assess their customer relationships and identify areas for improvement.
This article will explore the steps involved in calculating NPS, from the formula to the breakdown of scores. We will also examine the different methods and tools available for NPS calculation and some practical tips for designing NPS surveys and reports.
So, let’s dive in and learn how to calculate Net Promoter Score easily.
How to calculate your Net Promoter Score (NPS)
Calculating your Net Promoter Score (NPS) is a straightforward process that asks customers to rate their likelihood of recommending your product or service on a scale of 0 to 10.
Once you have collected the responses, you can classify them into three categories:
- Promoters (9-10)
- Passives (7-8)
- Detractors (0-6)
The NPS score is then calculated by subtracting the percentage of Detractors from the percentage of Promoters. The resulting score ranges from -100 to +100, with higher scores indicating higher customer loyalty and satisfaction.
By tracking your NPS over time, you can monitor customer sentiment and take appropriate actions to improve customer experience.
The Net Promoter Score formula
A NPS formula looks like this:
Net Promoter Score = (Number of Promoter Scores/Total Number of Respondents) – (Number of Detractor Scores/Total Number of Respondents)
Let’s test it out using hypothetical numbers:
Let’s imagine you surveyed 100 users, and the NPS results were as follows:
- 20 detractors (0-6 rating)
- 10 passives (7-8 rating)
- 70 promoters (9-10 rating)
When you plug these numbers into the formula, it will look like this:
50 = (70/100 [70%]) – (20/100 [20%])
Your NPS score in this example would be 50.
The Net Promoter Score formula
Downloading an NPS calculator template can save you time and effort when calculating your Net Promoter Score (NPS). These templates are readily available online and provide an easy-to-use framework for inputting customer responses and generating NPS scores.
NPS calculator templates often include pre-built formulas and charts to help you analyze your data and interpret your overall score. That can be particularly helpful if you are unfamiliar with Excel or other data analysis tools.
When you use a template, you can quickly and accurately calculate your NPS, identify areas for improvement, and take action to improve your overall customer satisfaction.
NPS score breakdowns
Once you have calculated your Net Promoter Score (NPS), it’s essential to understand the breakdown of your score.
NPS score breakdowns provide insight into the distribution of your customers across three categories: Promoters, Passives, and Detractors. Understanding this breakdown can help you identify areas where you may need to improve your customer experience and where you are doing well.
For example, a high number of Promoters indicates that your customers are satisfied and willing to recommend your business to others. On the other hand, a high percentage of detractors suggests that significant customer experience issues must be addressed.
You can take targeted actions to improve customer satisfaction and loyalty by analyzing your score breakdown.
Your score is measured with the following NPS calculation formula
Your Net Promoter Score (NPS) is a single number that measures customer loyalty and satisfaction based on their likelihood to recommend your product or service to others.
The score is calculated using a simple NPS calculation formula that subtracts the percentage of detractors (unsatisfied customers who are not likely to recommend your product or service) from the percentage of promoters (happy customers who are highly likely to recommend your product or service) and can range from -100 to 100.
The resulting score provides valuable insight into customer sentiment and can be used to identify areas for improvement and prioritize initiatives that will increase customer satisfaction and loyalty.
You've finished your Net Promoter Score calculation. Now what?
After calculating your Net Promoter Score, taking action based on the results is essential.
A high NPS indicates that your customers are loyal and satisfied with your products or services, while a low NPS suggests room for improvement.
Once you have your score, analyze the feedback you received from promoters, detractors, and passives to identify areas for improvement. Then, use the information to create an action plan to address issues and improve the customer experience.
Additionally, consider sharing your NPS report with your team, so everyone understands the results and can work together to make positive changes.
You’ve finished your Net Promoter Score calculation. Now what?
After calculating your Net Promoter Score, taking action based on the results is essential.
A high NPS indicates that your customers are loyal and satisfied with your products or services, while a low NPS suggests room for improvement.
Once you have your score, analyze the feedback you received from promoters, detractors, and passives to identify areas for improvement. Then, use the information to create an action plan to address issues and improve the customer experience.
Additionally, consider sharing your NPS report with your team, so everyone understands the results and can work together to make positive changes.
Promoters in NPS Calculation
Promoters are loyal customers with a score of 9 or 10 in response to the NPS survey question. They are delighted with your products or services and will likely recommend them to a friend or colleague.
Promoters are the backbone of any successful business and are instrumental in building a solid brand reputation.
By understanding and nurturing your Promoters, you can turn these loyal customers into advocates for your brand, generating positive word-of-mouth and driving more sales. Analyzing your Promoters’ feedback can also help you identify your strengths and capitalize on them to improve your business operations.
Download your NPS score data
Once you have calculated your NPS, it is vital to download your score data. This data can help you to gain insights into your customers’ feedback and improve your business.
Downloading your NPS score data allows you to analyze your customers’ responses and see where your business stands regarding customer satisfaction. It can also help you identify patterns in the feedback and areas where you need to improve.
You can make data-driven decisions to improve your business and increase customer loyalty by downloading and analyzing your NPS score data.
NPS calculation example
To better understand how NPS is calculated, let’s consider an example.
Say you sent out an NPS survey to 100 customers, and 60 of them responded. Of those 60 respondents, 40 gave a score of 9 or 10, 10 gave a score of 7 or 8, and 10 gave a score of 0 to 6.
To calculate NPS, find the percentage of Promoters (giving a score of 9 or 10) and the percentage of Detractors (giving a score of 0 to 6).
In this example, the percentage of Promoters is 66.7%, the percentage of Detractors is 16.7%, and the percentage of Passives is 16.7%.
You can calculate your NPS by subtracting the percentage of Detractors from the percentage of Promoters, resulting in an NPS of 50.
Calculate NPS with an NPS calculator
Calculating NPS manually can be time-consuming, especially if you have many survey responses.
Luckily, several NPS calculators are available online, making the process easier. These calculators use the same NPS formula as the manual method but automate the process, allowing you to quickly and easily calculate your NPS score.
Input the number of Promoters, Passives, and Detractors you have; the calculator will do the rest.
Some NPS calculators also provide additional features, such as score breakdowns and trend analysis, which can help you gain deeper insights into your NPS data.
Let SurveyMonkey handle the Net Promoter Score calculations for you.
SurveyMonkey is a popular online survey tool that offers Net Promoter Score surveys and can automatically calculate your score.
SurveyMonkey makes it easy for businesses to quickly collect NPS data and receive actionable insights into customer satisfaction levels. It also provides features for analyzing and visualizing NPS data, such as segmenting results by demographic information or tracking changes over time.
Additionally, SurveyMonkey allows you to customize your NPS survey with additional questions, making it a versatile and efficient tool for measuring and improving customer loyalty.
SurveyMonkey is an excellent resource for finding the right free NPS survey template.
How to Calculate NPS in Excel
Calculating NPS in Excel can be done by creating a simple formula that subtracts the percentage of detractors from the percentage of promoters. However, this can be time-consuming if you have a lot of data.
An easier way is to use an NPS calculator template in Excel, which can automatically calculate your NPS score and provide additional insights, such as the percentage of promoters, detractors, and passives.
Several free NPS calculator templates are available online to download and use to streamline your NPS calculation process.
Detractors in NPS calculation
Detractors give a low rating (0-6) in response to the NPS question. As a result, they are considered unhappy customers and at risk of churning.
Their negative feedback can provide valuable insights for businesses to identify areas of improvement.
Why should you calculate NPS?
Calculating NPS is essential for understanding your customer loyalty and satisfaction levels. NPS can help identify areas of improvement and measure the effectiveness of customer service strategies.
By analyzing the feedback collected through NPS surveys, you can pinpoint specific issues that need addressing and take actionable steps to improve customer experience. Additionally, NPS can be used to benchmark against competitors in your industry and gain insights into your market position.
Finally, by measuring NPS regularly, you can track changes over time and make data-driven decisions that will ultimately increase customer satisfaction and loyalty.
Use NPS surveys to collect data
Using NPS surveys can help you collect valuable customer satisfaction and loyalty data. By asking a simple question and categorizing the responses, you can gain insights into your customers’ perceptions of your brand and identify areas for improvement.
NPS surveys can be conducted at various touchpoints throughout the customer journey, including after a purchase, after customer support interactions, or regularly to track overall satisfaction.
Collecting and analyzing NPS data can inform strategic decision-making and drive business growth.
What are passives in NPS calculation?
Passives are customers who gave a score of 7 or 8 out of 10 in an NPS survey. They are satisfied customers but not enthusiastic customers.
Passives are essential to pay attention to as they may be more likely to switch to a competitor if they encounter a better offer or experience. Therefore, companies need to focus on converting Passives into Promoters through targeted actions and improvements to improve the overall score.
Find the percentage of promoters and detractors
To find the percentage of promoters and detractors, calculate the number of respondents who fall into each category and then divide that by the total number of responses.
The percentage of promoters is calculated by dividing the number of respondents who gave a score of 9 or 10 by the total number of respondents and multiplying the result by 100.
Similarly, the percentage of detractors is calculated by dividing the number of respondents who gave a score of 0 to 6 by the total number of responses and multiplying the result by 100.
Three actionable NPS calculation methods
There are various ways to use the Net Promoter Score (NPS) to make actionable decisions that improve customer loyalty and satisfaction. Here are three methods:
- Design an NPS Survey with additional questions: Instead of just asking customers if they are likely to recommend your brand to others, ask follow-up questions to understand why. That can provide insight into what customers value and what areas need improvement.
- Create and share an NPS report to inspire action: Share the results of your NPS survey with employees, stakeholders, and customers. That creates transparency and accountability, encouraging everyone to take action to improve the customer experience.
- Are your customers satisfied, or are they at risk of churning? Use the NPS system to identify the risk of customer churn. For example, customers who score 6 or below are detractors at risk of churning. Focusing on these customers and improving their experience can reduce churn and increase loyalty.
Design an NPS survey with additional questions
Designing an NPS survey with additional questions can provide valuable insights into what is driving your customer’s loyalty. For example, you can ask new customers about their experience with specific products or services, their satisfaction with customer service, or any other relevant areas.
These additional questions can help identify areas of strength and weaknesses in your business and highlight opportunities for improvement.
By including open-ended questions, you can also gather feedback that can provide context for your NPS calculation. This approach can help you better understand your customers’ needs and expectations and can inform decisions about how to improve the customer experience.
Exclude responses before you start your Net Promoter Score calculation.
When determining your net promoter score calculation, it is important to exclude certain responses, such as those from customers who have not used your product or service. That will ensure that your score accurately reflects the opinions of your actual customers rather than those who are not relevant to your business.
NPS survey: what follow-up questions to ask
After collecting NPS survey results, follow up with additional questions to gain deeper insights into customer perceptions and experiences. For example, some follow-up questions could be related to specific product or service features, overall customer satisfaction, or suggestions for improvement.
Asking open-ended questions can also provide valuable qualitative data that can be used to inform business decisions. Therefore, carefully consider which follow-up questions to ask to avoid survey fatigue and ensure the additional questions are relevant and actionable.
The insights gained from follow-up questions can help companies identify areas for improvement and make informed decisions.
Relationship vs. transactional NPS surveys
A relationship survey and a transactional NPS survey are two different types of surveys used to measure customer loyalty.
A relationship NPS survey is conducted periodically to measure the overall loyalty of customers. Transactional surveys are sent after a specific interaction, such as a purchase or a support ticket, to measure loyalty related to that particular interaction.
A relationship NPS survey provides a holistic view of customer loyalty over time, while transactional surveys allow companies to pinpoint specific areas of improvement.
Depending on your goals, you can conduct one or both surveys to understand your customer loyalty better.
How Many Respondents Should I Survey?
It’s recommended to survey a representative sample of your customer base, ideally at least 30 respondents. However, the actual number of respondents you need may depend on the size of your customer base and the level of precision you want in your NPS calculation.
Easy Net Promoter Score: Frequently Asked Questions
Here are some of the most frequently asked questions about easily calculating NPS:
How is NPS score calculated?
NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters.
What is considered a good NPS score?
A good NPS score varies by industry, but generally, above 50 is considered good, and above 70 is considered excellent.
Is 5% of NPS good?
5% NPS is considered poor, suggesting more detractors than promoters.
How does Excel calculate NPS?
Excel calculates NPS using a simple formula of the percentage of promoters minus the percentage of detractors.
How is NPS calculated?
NPS is calculated by asking customers to rate their likelihood of recommending a product or service on a scale of 0-10, with 0-6 being detractors, 7-8 being passives, and 9-10 being promoters.
How do you calculate NPS 1 to 10?
To calculate net promoter scores on a scale of 1 to 10, subtract the percentage of detractors (those who scored 0 to 6) from the percentage of promoters (those who scored 9 or 10).
What is the formula to calculate NPS in Excel?
The formula to calculate net promoter score in Excel is: = (Number of Promoters – Number of Detractors) / (Total Respondents) * 100
How do you calculate NPS 1 to 5?
To calculate your NPS on a 1-5 scale, group scores of 1-2 as detractors, 3 as passive, and 4-5 as promoters.
How do you calculate Net Promoter Score?
Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a score between -100 to 100.
What are example net promoter scores?
Example Net Promoter Scores (NPS) can range from -100 to +100, with scores above 0 considered positive and an average score above 50 is considered excellent. For instance, Apple’s NPS is around 70, while the airline industry typically has an NPS of about 30.
Is the NPS score range 0 10 or 1 10?
The NPS score range is typically 0 to 10.
What is NPS score based on?
NPS calculation is based on the collected responses to the Net Promoter Score survey question, which asks customers how likely they are to recommend a product or service to others on a scale of 0 to 10.
How do you calculate the Net Promoter Score quizlet?
The Net Promoter Score (NPS) quizlet is a learning tool for understanding NPS concepts and is not used for actual NPS calculation.
What is the NPS rating scale?
The NPS rating scale is a 0-10 scale used to measure customer loyalty and satisfaction, with customers being categorized as promoters, passives, or detractors based on their scores.
What is a good Net Promoter Score?
A score above 50 is considered excellent, while a score above 70 is considered world-class.
What is the NPS score percentage?
The NPS score percentage is the percentage of promoters minus the percentage of detractors, ranging from -100% to +100%.
Is NPS a 10 or 11-point scale?
The NPS scale typically ranges from 0 to 10, but some variations use an 11-point scale.
Why is the NPS scale 0 to 10?
The NPS scale ranges from 0 to 10 because it allows for a more straightforward interpretation and comparison of scores, and this NPS system aligns with many countries’ standard grading systems. The 0 to 10 scale is also familiar and intuitive for survey respondents.
What is the best scale for NPS?
The 0-10 scale is considered the best for NPS as it provides a broader range of scores and allows for more nuanced customer feedback.
What is a Net Promoter Score of 10?
A Net Promoter Score (NPS) of 10 is the highest possible score and represents customers who are highly likely to recommend the product or service to others.
Is NPS out of 5 or 10?
NPS can be calculated using both a 5-point or 10-point scale, depending on the preference of the organization or individual conducting the survey.
How do you find NPS on a 5-point scale?
To find the NPS on a 5-point scale, you need to group the total responses into three categories: Detractors (1-3), Passives (4-5), and Promoters (5). Then, calculate the NPS using the same formula as the 0-10 scale.
