NPS Score 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
The NPS is derived from a single survey question: "How likely are you to recommend [Company/Product/Service] to a friend or colleague?" Respondents answer on a 0-10 scale, and based on their score, they are categorized into three groups:
- Promoters (Score 9-10): These are loyal enthusiasts who will keep buying 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 contribute to the score.
NPS Formula: NPS = (% Promoters - % Detractors)
Or, in terms of raw numbers, as used in the calculator above:
NPS = ((Number of Promoters - Number of Detractors) / Total Number of Respondents) * 100
Why NPS Matters
A high NPS indicates strong customer loyalty, which often correlates with higher customer retention, increased word-of-mouth referrals, and ultimately, business growth. It provides a simple, actionable metric that can be tracked over time to assess the impact 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:
- Above 0: Good
- Above 20: Favorable
- Above 50: Excellent
- Above 70: World-class
However, what constitutes a "good" NPS can vary significantly by industry. It's often more valuable to compare your score against industry benchmarks and your own historical performance rather than aiming for an arbitrary number.
Example Calculation
Let's say you surveyed 100 customers and received the following responses:
- 60 Promoters (scores 9-10)
- 20 Passives (scores 7-8)
- 20 Detractors (scores 0-6)
Total Respondents = 60 + 20 + 20 = 100
Using the formula:
NPS = ((60 - 20) / 100) * 100
NPS = (40 / 100) * 100
NPS = 0.40 * 100
NPS = 40
In this example, your NPS would be 40, indicating a strong base of loyal customers.