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Calculating The Net Promoter Score

Net Promoter Score Formula:

\[ NPS = \%Promoters - \%Detractors \]

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1. What is Net Promoter Score?

The Net Promoter Score (NPS) is a metric used to gauge customer loyalty and satisfaction by subtracting the percentage of Detractors from the percentage of Promoters. It ranges from -100 to +100 and provides insights into customer experience.

2. How Does the Calculator Work?

The calculator uses the NPS formula:

\[ NPS = \%Promoters - \%Detractors \]

Where:

Explanation: Customers are categorized as Promoters (9-10), Passives (7-8), and Detractors (0-6). The score reflects the balance between enthusiastic and unhappy customers.

3. Importance of NPS

Details: NPS is widely used in business to measure customer experience, predict business growth, and benchmark performance against competitors. Higher scores correlate with better customer retention and revenue growth.

4. Using the Calculator

Tips: Enter the percentage of Promoters and Detractors (as whole numbers or decimals). The sum should not exceed 100% (as Passives make up the remainder).

5. Frequently Asked Questions (FAQ)

Q1: What is a good NPS score?
A: Scores above 0 are good, above 50 excellent, and above 70 world-class. Industry benchmarks vary significantly.

Q2: How often should NPS be measured?
A: Typically quarterly, though some companies measure continuously. Consistency in timing is important for trend analysis.

Q3: Why are Passives not included in the calculation?
A: Passives (7-8 scores) are considered neutral and don't actively promote or detract, so they don't impact the net score.

Q4: What's the difference between NPS and customer satisfaction?
A: NPS measures loyalty and likelihood to recommend, while satisfaction measures how happy customers are with your product/service.

Q5: Can NPS be negative?
A: Yes, negative scores indicate you have more Detractors than Promoters, which is a warning sign for your business.

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