Learn how to calculate your Net Promoter Score with our easy-to-follow guide, including expert-certified NPS templates and global industry benchmarks.
Net Promoter Score® (NPS®) is a common metric for evaluating customer experience (CX) and loyalty. It measures customers' satisfaction with a company and their willingness to recommend it to others.
This guide explains how to calculate your NPS accurately, from understanding the basic formula to analyzing the results of your NPS survey. We’ll provide the methodology for calculating your score and how to use this data to improve customer relationships.
Net Promoter Score operates through a straightforward survey model. Organizations send out a survey with the core NPS question: "How likely would you recommend this company to a friend or colleague?"
To gain further insights, companies often ask one or two follow-up questions, like "What could we do to improve your experience?" or "What did you appreciate most about our service?" These questions provide valuable context to the initial response, helping pinpoint strengths and areas for improvement.
Related: NPS survey template
The NPS scale categorizes respondents into three groups based on their loyalty and satisfaction. Each category is defined by how respondents answer the core NPS question.
Here's a breakdown of each group:
To calculate your NPS score, subtract the percentage of detractors from the percentage of promoters (% of promoters - % of detractors.)
Here's our step-by-step breakdown:
Imagine you received 100 responses to your NPS survey:
Promoters are 70%, and detractors are 10%. Subtracting 10% from 70% gives an NPS of 60.
Calculating NPS for 100 respondents is easy. However, as your survey size increases, the calculation can become complex. When you use the SurveyMonkey NPS template, the built-in NPS calculator calculates these scores automatically, ensuring you get 100% accurate results faster.
Determining a good Net Promoter Score isn't straightforward because it varies by industry, company size, and market context.
Here are five key points to consider when benchmarking your NPS score:
Comparing your score to these NPS benchmarks clarifies where your company stands and highlights potential areas for improvement to enhance customer loyalty and satisfaction.
Once you've calculated your Net Promoter Score, leveraging this metric to drive improvements and foster business growth is crucial. Here are practical best practices to use your NPS effectively:
Why this matters: Sharing NPS insights ensures relevant teams understand customer sentiments and align to improve the customer experience.
Regularly share detailed reports with teams that can benefit most, such as customer experience and sales teams. These reports should highlight key data points and insights that showcase the importance of NPS data.
Why this matters: Action plans based on NPS feedback can directly influence improvements in customer service and product offerings, enhancing overall satisfaction.
Analyze NPS data to identify common trends and areas needing attention. Develop targeted strategies to address issues highlighted by detractors and enhance aspects that promoters value.
Why this matters: Continuous monitoring allows businesses to gauge the effectiveness of implemented changes and make adjustments as customer expectations evolve.
Regular NPS surveys allow you to track changes and trends as your company evolves. Determining your ideal interval will depend on your business and industry. For example, a tech company with many product releases may want to conduct NPS surveys quarterly.
Why this matters: Aligning business strategies with customer feedback can lead to higher customer satisfaction and loyalty, ultimately driving growth and profitability.
Use insights from NPS data to guide decisions in product development, customer service improvements, and marketing strategies. By focusing on specific customer pain points identified through NPS, businesses can effectively boost user experience and foster growth.
Understanding how to calculate your Net Promoter Score is essential for assessing customer loyalty and identifying opportunities to enhance their experience. Through a straightforward NPS calculation, you gain valuable insights into where your company stands with customers and can measure your performance against competitors.
SurveyMonkey simplifies this process with an expert-certified NPS survey template. Effortlessly conduct NPS surveys, automatically calculate your score, and compare results against industry benchmarks. Sign up to boost customer loyalty with an NPS survey from SurveyMonkey.
NPS, Net Promoter, and Net Promoter Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
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