What is Net Promoter Score (NPS)?

The Net Promoter Score is a benchmark that decides index ranging between -100 to 100 for a company's provided services and products and it gives user single interaction to your company.
It measures a customer's overall sentiment about a brand, versus their perception of a singular interaction or purchase.

How the scoring works

We scored the answers to the ultimate question on a simple zero-to-ten scale. This scale is easy for customers to understand. And the responses tend to cluster in three groups, each one characterized by different attitudes, behaviors and, therefore, economic value.

Respondents who gave a score of 9 or 10
Respondents who gave a score of 7 or 8
Respondents who gave a score of 1 to 6

NPS Example

Let's use a quick example to explain Net Promoter Score calculation using the formula! Let's consider a scenario where a business which wants to calculate Net Promoter Score for product X amongst its 50 consumers. Now let's say after the responses are collected, 25 of the respondents are Promoters, 15 are passive and 10 are detractors. So based on the Net Promoter Score formula:

What Is a Good NPS Score?

The higher a company’s NPS, the better. The max score is 100 percent and the lowest score can be -100 percent. This would mean that out those who took your NPS survey 100 percent were NPS Promoters without a single NPS Passive or NPS Detractor. A good NPS score though doesn’t need to be 100 percent. Anywhere from 50 to 100 percent is considered a good to excellent NPS score. Depending on your industry it could be almost impossible to achieve 100 percent so it is important to benchmark your NPS score against your industry when possible.

How to Improve Your Net Promoter Score?

If you are a few points off a great Net Promoter Score, or you want to completely revamp your brand and drastically change your Net Promoter Score from a low to a high score there are many things that you can do.

  1. Educate People Within the Business
  2. Engage with Influencers on Social Media
  3. Turn NPS Detractors into NPS Promoters
  4. Plan a follow-up NPS Survey

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