How is NPS calculated?

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Now comes the fun part: how do you actually calculate your NPS? Don't worry, you won't need a scientific calculator for this.

It all starts with the key question I mentioned earlier. It's a simple but powerful question you should ask your clients:

"On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?"

That's it. No tricks, no fine print. Just one straightforward question that will give you deep insight into your customers' loyalty.

Once you have the answers, it's time to categorize them:

Those who respond with a 9 or 10 are your Promoters . These are your die-hard fans, the ones who sing your praises from the rooftops.
Those who respond with a 7 or 8 are your Passives . They're satisfied, but not enthusiastic enough to actively recommend you.
And then there are those who respond with a 6 or lower. These are your Detractors . They are the dissatisfied customers who could potentially damage your reputation with negative word of mouth.
Now, here's the magic formula for calculating your NPS:

NPS = Promoters (%) - Detractors (%)

Net-Promoter-Score

It's that simple. Take the percentage of Promoters, subtract the percentage of Detractors, and that's it. You have your Net Promoter Score.

Let's look at a quick example:

Let's say you survey 100 customers and get the following responses:

60 Promoters
20 Liabilities
20 Detractors
Here's how you would calculate your NPS:

% of Promoters = 60%
% of Detractors = 20%
NPS = 60% - 20% = 40
And there you have it! Your NPS is 40. By the way, any score above 0 is considered good, and anything above 50 is excellent. But there's always room for improvement.

Why do NPS surveys?
Now that you know what NPS is and how to calculate it, you might be wondering, "Why should I bother doing these surveys?" Well, let me tell you why NPS surveys are like a superpower for your business.

First, NPS surveys allow you to obtain direct and honest feedback from your customers . It's like having a direct line into their minds. You'll be able to find out what they like, what they don't like, and what they'd like to see improved. This information is pure gold for identifying areas for improvement and measuring the effectiveness of your marketing and customer service efforts.

Plus, NPS surveys are incredibly versatile. You can use chinese student data them to evaluate a new product launch, measure the quality of your after-sales service, or even compare the performance of different branches or teams . The possibilities are endless.

Importance of NPS to improve customer satisfaction
Let's talk about the relationship between NPS and customer satisfaction.

Think of it this way: a high NPS is like having an army of happy, loyal customers singing your praises at every turn. On the other hand, a low NPS is like an alarm bell screaming , "Attention! Your customers aren't happy and might jump ship.