NPS Concept and Formula

1. It starts with asking your customers this simple question:

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…and logging their responses:

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2. Classify your respondents into three groups based on their answers:

    • Promoters are loyal customers and a great source of referrals (Scores 9-10)
    • Passive customers are satisfied with the service but are susceptible to competitors (Scores 7-8)
    • Detractors are unhappy customers and can damage your brand (Scores 0-6)
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[Tip: Use the follow-up answers as an actionable source of customers’ concerns. Imagine immediately responding to a Detractor’s complaint, targeting your Passives with an information campaign, or tweeting a Promoter’s testimonial.]

3. Calculate your Account Level NPS Score:

subtract the % of respondents who are Detractors from the % of respondents who are Promoters.

NPS = % Promoters – % Detractors

The NPS score is between -100 and 100. For example, if all of the customers gave a score lower or equal to 6, this would lead to a NPS of -100. If all individuals answered the question with a 9 or 10, then the total Net Promoter Score would be 100. Net Promoter scores often average quite low. Fred Reichheld, in his 2003 study of 400 companies across 28 industries (HBR article “The One Number You Need to Grow”), found that the median Net Promoter score was just 16.

(Information courtesy of wootric.com. To learn more, click here.)  

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