How to Know Your NPS Score as a Business
Net Promoter Score (NPS) is a powerful metric that helps businesses measure customer loyalty, satisfaction and overall experience. Understanding how to calculate and interpret your NPS score can give you valuable insights into your customers’ opinions and help you improve your products or services. In this guide, we’ll walk you through how to know your NPS score and leverage it to grow your business.
What Is NPS (Net Promoter Score)?
Net Promoter Score (NPS) measures customer satisfaction and loyalty based on how likely customers are to recommend your business to others. It’s based on a single survey question:
“On a scale of 0 to 10, how likely are you to recommend our business to a friend or colleague?”
The NPS score ranges from -100 to +100 and customers are classified into three categories:
Promoters (9–10): Loyal customers who are likely to recommend your business.
Passives (7–8): Satisfied but indifferent customers.
Detractors (0–6): Unhappy customers who may deter others from engaging with your business.
By calculating the percentage of promoters and detractors, you can derive your NPS score, which reflects customer satisfaction and overall brand loyalty.
How to Collect NPS Responses from Your Customers
To calculate your NPS score, you need to gather feedback from your customers. Here are several effective ways to collect NPS responses:
Email Surveys: Send a survey to your customers asking the NPS question. Email surveys are widely used because they allow for easy distribution and response tracking.
Website Pop-ups: Embed an NPS survey on your website or app, especially after a customer interacts with your product or service.
SMS Surveys: Send text messages with a short NPS survey for quick feedback.
Phone or In-person Surveys: For more personalized feedback, ask customers for their NPS score in person or via phone calls.
Make sure the survey is simple and offer an optional follow-up question like, “What’s the main reason for your score?” to gather more context on their response.
How to Calculate Your NPS Score
Once you’ve collected responses, it’s time to calculate your NPS score. Here’s the simple formula:
NPS = (% of Promoters) – (% of Detractors)
For example, let’s say you surveyed 100 customers and received the following:
60 customers (9–10 score): 60% Promoters
20 customers (7–8 score): 20% Passives (Not used in the calculation)
20 customers (0–6 score): 20% Detractors
Your NPS calculation would be:
NPS = 60% (Promoters) – 20% (Detractors) = 40
So, your NPS score would be 40.
What Is a Good NPS Score?
NPS scores can range from -100 (all detractors) to +100 (all promoters). Here’s how to interpret your NPS score:
Above 0: Indicates you have more promoters than detractors, which is a positive sign.
Above 30: A solid NPS score that indicates a strong level of customer satisfaction.
Above 50: Excellent score – it means you have high customer loyalty.
Above 70: World-class customer loyalty and satisfaction.
Different industries have different average NPS scores, so it’s important to compare your score with industry standards.
How to Analyze Your NPS Results
Once you have your NPS score, it’s crucial to analyze the results in-depth. Look for patterns and insights from customer feedback. For example:
Promoters: Review the comments from promoters to understand what customers love about your product or service. This can help reinforce successful strategies.
Detractors: Pay attention to what detractors say. Their feedback can pinpoint areas for improvement, such as product flaws, customer service issues or pricing concerns.
Passives: Although they don’t actively promote your business, passives are satisfied customers. Engage with them to convert them into promoters.
Consider segmenting your NPS data by customer demographics, product lines, or locations to identify specific trends.
How to Improve Your NPS Score
Once you know your NPS score and have analyzed the feedback, the next step is to improve your customer experience. Here are a few strategies:
Address Complaints: Focus on resolving issues raised by detractors. Improving customer support or refining your product can go a long way in increasing satisfaction.
Enhance Customer Engagement: Build stronger relationships with your promoters through personalized experiences, exclusive offers, or loyalty programs.
Follow Up: Show customers you’re listening by responding to their feedback, making changes based on their suggestions, and thanking them for their input.
By consistently improving your business based on NPS feedback, you can increase your customer loyalty, reduce churn and grow your brand.
