Net Promoter® Score | The Concept & Calculation



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Net Promoter ® Score

In a normal customer satisfaction survey, you might ask customers for specific feedback on the products and services you provide to determine customer service satisfaction. Questions like: "How satisfied were you with our product prices?"

While this question and others can be benefical, these questions might not provide you with all of the detail you need to improve your business.

Why? Because people who are satisfied might still leave. They might appreciate your products, price, or service, but other companies may do these things better. In other words, they may like you, but they may like others more.

The Net Promoter® Score Bain & company developed in 2003 is designed to ask something a lot different. Instead of asking if your customers are satisfied, you're asking your customers if they're promoters of your company. You're trying to determine if your customers are willing to speak up and recommend your brand. This is vital if you wish to expand your business, as positive reviews and feelings toward your company can really promote growth.

This question will provide you with one number that will show you just how many of your customers are truly company advocates.

Calculate Net Promoter Score (NPS):

Number of Promoters:

Number of Passives:

Number of Detractors:

Net Promoter Score

__

The SurveyKing current 6 month average is 36

A perfect score is 100

The worst possible score is -100

The Net Promoter Score Question

"How likely is it that you would recommend _____________ to a friend or colleague?"
Customers rate their answers on a scale from 0 to 10.

The answers customers provide are classified as follows:

  • 0–6 = Detractors: Unhappy customers who can hurt your brand through negative word-of-mouth
  • 7–8 = Passives: Satisfied but indifferent customers who could be swayed by the competition
  • 9–10 = Promoters Loyal customers who will keep buying and referring others
How to Calculate Net Promoter® Score

The NPS calculation is simple. It's simply the percentage of people who would likely promote your brand over the total number of people asked.

A perfect or ideal score is 100, and the worst possible score is -100

net promoter score explained net promoter score calculation
Why Use Net Promoter Score
When you ask customers the Net Promoter® Score question, you're asking whether or not they're taking the time to say positive things about your company or brand. Today, word of mouth is everything—especially as opinions spread faster via social, online forums, and reviews.

Determining your Net Promoter Score is the quickest way to see how your company is doing from a customer prospective. Historically, positive NPS scores have showed a strong correlation to growth and profits for companies. Organizations ranging from small start-ups to some of the world's biggest names use NPS to assess customer satisfaction and track performance because it is:

  • Simple and quick: One question is all it takes to determine your Net Promoter Score with one simple calculation. With our Net Promoter Survey Template, you can send your survey in minutes.
  • Quantifiable: Management can see how well your company is performing with one simple number. The NPS score is easy to understand by everyone.
  • Standardized: Widely known as the standard for measuring and improving customer loyalty, the NPS is trusted by brands like Travelocity, American Express, Apple, Comcast, and Expedia.
  • Benchmarkable: Arguably the most valuable benefits is the ability to see how your organization compares to the competition. Because hundreds of companies use NPS, you have data to measure and track your performance to external benchmarks. Results also include the SurveyKing global averages. This will help you to see how you're doing on average compared to others.
Tips to Use Promoter® Score

Always use an open-ended text question on any survey that asks for NPS. This will help determine what your promoters really like and what your detractors dislike. Open ended text questions include word clouds; making a presentation on how to improve NPS a breeze.

History of the Net Promoter® Score Question

in 2003, Fred Reichheld and a Bain & Company launched a research project to determine whether a different approach than the standard customer satisfaction survey would yeild better restuls. Working with data supplied by Satmetrix, they tested a variety of questions to see how well the answers correlated with company performance and customer behavior.

As it turned out, one question worked best, and thus the NPS question was born.

Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

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