{"id":7919,"date":"2023-03-04T11:56:22","date_gmt":"2023-03-04T11:56:22","guid":{"rendered":"https:\/\/www.rankaza.com\/blog\/the-ultimate-guide-to-net-promoter-score\/"},"modified":"2023-03-04T11:56:22","modified_gmt":"2023-03-04T11:56:22","slug":"the-ultimate-guide-to-net-promoter-score","status":"publish","type":"post","link":"https:\/\/www.rankaza.com\/blog\/the-ultimate-guide-to-net-promoter-score\/","title":{"rendered":"The Ultimate Guide to Net Promoter Score"},"content":{"rendered":"

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Measuring your Net Promoter Score (NPS) is the most effective way to<\/span> gauge<\/span> customer satisfaction. NPS dates back to 2003, when Fred Reichheld, a partner at Bain & Company, introduced a novel way of measuring how pleased your customers are with the products and services you deliver.<\/span><\/p>\n

If you\u2019re unfamiliar with NPS, <\/span>this guide will help you understand<\/span> what NPS means and how you can use NPS for your business growth and to improve customer satisfaction.<\/span><\/p>\n

What is Net Promoter Score?<\/strong><\/h2>\n

NPS or Net Promoter Score is a market research metric used to gauge the likelihood of a customer recommending your product\/ service\/ brand to a friend.<\/span><\/p>\n

It utilizes an index ranging from -100 to 100, based on the key question asked in the NPS survey, \u201cHow likely are you to recommend this company?\u201d As an answer to this question, customers are required to submit a rating on a scale from 0 to 10. and the respondents get divided into 3 groups based on their answers.<\/span><\/p>\n

Group 1: Detractors<\/strong><\/h3>\n

Detractors <\/span>are respondents who give<\/span> a 6 or lower rating on the NPS survey. These customers are less likely to recommend your products\/ services.<\/span><\/p>\n

Group 2: Passive<\/strong><\/h3>\n

The passive ones are customers who answer with a 7 or 8 on the NPS survey. These respondents may be loyal to your brand but are more likely to be influenced by competitors or unlikely to recommend your brand to their peer group, as compared to the people who submit a higher score on the NPS scale.<\/span><\/p>\n

Group 3: Promoters<\/strong><\/h3>\n

Promoters are the customers who answer with a 9 or 10. These customers are a true testament to <\/span>customer loyalty<\/span><\/a>, and they happily accept their role as brand advocates. They are likely to stay associated with your brand in the long run, act as a referral, and bring in new customers with them.<\/span><\/p>\n

How is <\/b>Net Promoter Score <\/b>calculated<\/b>?<\/b><\/h2>\n

NPS calculation is fairly simple. <\/span>You can calculate it by subtracting your percentage of detractors from your percentage of promoters. Passive respondents have no impact on your score.\u00a0<\/span><\/p>\n

For example, let\u2019s say you survey 100 customers. According to the NPS survey, 15 rated your business 0-6, 25 rated it 7 or 8, and 60 gave you a 9 or 10. Since the sample size in this example is 100, each group represents a percentage. So to calculate your score, you\u2019d subtract 15 from 60, which will get an NPS=45.<\/span><\/p>\n

\"nps\"<\/p>\n

Remember, the net promoter score is not an average of the received responses. In fact, \u201cpassive\u201d customers who rate your business a 7 or 8 aren\u2019t even considered a part of this calculation. So, is NPS a percentage? No.<\/span><\/p>\n

The NPS scale ranges from -100 to 100. So as you calculate and evaluate your score, remember that anything above 0 means your company has more promoters than detractors and that you shouldn\u2019t compare it to metrics measured using standard percentages.<\/span><\/p>\n

\"Calculate<\/a><\/p>\n

What are the 3 NPS scores?<\/strong><\/h3>\n

According to the creators of NPS, <\/span>any score above 0 is good since it denotes a higher number of promoters for your brand. <\/span>Bain & Company shares the categorization for NPS data as follows.<\/span><\/p>\n