Net Promoter Score Formula:
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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.
The calculator uses the NPS formula:
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.
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.
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).
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.