What is NPS?
Net Promoter Score surveys ask customers how likely they are to recommend your business. This is a great way of gauging a customer's overall happiness with your company.
The question wording and scale is always the same: "How likely are you to recommend [company name] to a friend or colleague?" with a scale of 0 to 10, from "not likely" to "very likely".
How is NPS calculated?
Responses are divided into three groups based on the score:
- 9-10: Promoters
- 7-8: Passives
- 0-6: Detractors
NPS is calculated as Percentage of Promoters minus percentage of Detractors. The highest possible score is 100 and the lowest possible is -100.
A "good" NPS score can vary a lot by industry, customer type and location, but you should be aiming to get into the positive half of the scale at least. As a rough guide, 10-30 is a good score, 30-50 is very good and 50+ is getting into best-in-class territory. When a very high proportion of your respondents are "promoters" it will start to manifest in real world benefits like word-of-mouth referrals and higher retention rates.
Imagine you have 100 NPS responses:
- 60 are Promoters
- 20 are Passives
- 20 are Detractors
That means the calculation is 60% - 20% = 40%. You have an NPS of 40.