{"id":6585,"date":"2020-09-03T15:02:48","date_gmt":"2020-09-03T15:02:48","guid":{"rendered":"http:\/\/davidm123.sg-host.com\/?p=6585"},"modified":"2022-12-05T14:35:35","modified_gmt":"2022-12-05T14:35:35","slug":"net-promoter-score-how-to-calculate-nps","status":"publish","type":"post","link":"https:\/\/wp-stagesh.bugfree.co.uk\/survey-design\/net-promoter-score-how-to-calculate-nps\/","title":{"rendered":"Net Promoter Score: How to Calculate NPS"},"content":{"rendered":"\n<nav class=\"wp-block-stackable-table-of-contents stk-block-table-of-contents stk-block stk-1c96b27\" data-block-id=\"1c96b27\"><ul class=\"stk-table-of-contents__table\"><li><a href=\"#undefined\">What is Net Promoter Score?<\/a><\/li><li><a href=\"#undefined\">How is NPS calculated?<\/a><\/li><li><a href=\"#undefined\">What is a good Net Promoter Score?<\/a><\/li><li><a href=\"#undefined\">Benefits of Net Promoter Score<\/a><\/li><li><a href=\"#undefined\">Disadvantages of Net Promoter Score<\/a><\/li><li><a href=\"#undefined\">Tips for improving NPS<\/a><\/li><\/ul><\/nav>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">What is Net Promoter Score?<\/h2>\n\n\n\n<p>Net Promoter Score (NPS) is the standard for measuring customer loyalty. This is gauged by their likelihood to recommend your product, service or brand to a friend or colleague.<\/p>\n\n\n\n<p>It is the correlation between a customer\u2019s advocacy (i.e., positive word of mouth) and revenue growth that has made NPS a key metric in driving business development.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">What question do you ask to determine NPS?<\/h3>\n\n\n\n<p>To measure customer loyalty, you need to ask one simple question:<\/p>\n\n\n\n<p><b>On a scale of 0 to 10, how likely are you to recommend this product to a friend or colleague?<\/b><\/p>\n\n\n\n<p>0 would be labelled with \u2018Not at All Likely\u2019 and 10 with \u2018Extremely Likely\u2019.<\/p>\n\n\n\n<p>Your NPS question does not have to ask for a recommendation of a product, it can concern any aspect of your business. E.g., services, brand, websites, events or customer service.<\/p>\n\n\n\n<div class=\"wp-block-stackable-call-to-action stk-block-call-to-action stk-block stk-3ecb277 is-style-default\" data-block-id=\"3ecb277\"><style>.stk-3ecb277-container{background-color:var(--theme-palette-color-4,#0e0c1b) !important;background-image:url(https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2022\/05\/lines-background-2.svg) !important}.stk-3ecb277-container:before{background-color:var(--theme-palette-color-4,#0e0c1b) !important;opacity:0.5 !important}<\/style><div class=\"stk-block-call-to-action__content stk-content-align stk-3ecb277-column stk-container stk-3ecb277-container stk-hover-parent stk--has-background-overlay\"><div class=\"has-text-align-center stk-block-content stk-inner-blocks\">\n<div class=\"wp-block-stackable-image stk-block-image stk-block stk-c565b96\" data-block-id=\"c565b96\"><style>.stk-c565b96 .stk-img-wrapper{width:16% !important}<\/style><figure class=\"stk-img-wrapper stk-image--shape-stretch\"><img loading=\"lazy\" decoding=\"async\" class=\"stk-img wp-image-11640\" src=\"https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2022\/10\/with-registered-on-white.svg\" width=\"16\" height=\"300\"\/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block stk-6366bad\" id=\"calculate-your-nps-with-shout\" data-block-id=\"6366bad\"><style>.stk-6366bad{margin-bottom:16px !important}.stk-6366bad .stk-block-heading__text{margin:0 !important;color:var(--theme-palette-color-8,#ffffff) !important}<\/style><h3 class=\"stk-block-heading__text has-text-color\">Calculate your NPS with Shout<\/h3><\/div>\n\n\n\n<div class=\"wp-block-stackable-text stk-block-text stk-block stk-58fabc4\" data-block-id=\"58fabc4\"><style>.stk-58fabc4 .stk-block-text__text{color:var(--theme-palette-color-7,#FBFBFB) !important}<\/style><p class=\"stk-block-text__text has-text-color\">Measure your customer loyalty with a single question, and we&#8217;ll calculate your Net Promoter Score for you.<\/p><\/div>\n\n\n\n<div class=\"wp-block-stackable-button-group stk-block-button-group stk-block stk-31ff8b8\" data-block-id=\"31ff8b8\"><div class=\"stk-row stk-inner-blocks stk-block-content stk-button-group\">\n<div class=\"wp-block-stackable-button stk-block-button stk-block stk-edb3203\" data-block-id=\"edb3203\"><a class=\"stk-link stk-button stk--hover-effect-darken\" href=\"https:\/\/wp-stagesh.bugfree.co.uk\/nps-surveys\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"stk-button__inner-text\">NPS Surveys<\/span><\/a><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">NPS scale<\/h3>\n\n\n\n<p>The Net Promoter Score scale usually consists of 11 response options; from 0 \u2013 10.<\/p>\n\n\n\n<p>Fred Reichheld, who developed the NPS system, thought it necessary to have 11 points in the scale so respondents would not mistake 1 as the highest point.<\/p>\n\n\n\n<p>However, some businesses also use 10 point and 5-point scales to determine their score. A study from MeasuringU on <a href=\"https:\/\/measuringu.com\/nps-scale-change\/\" target=\"_blank\" rel=\"noopener\">changing NPS scales<\/a> found that:<\/p>\n\n\n\n<ul data-block-type=\"core\">\n<li data-block-type=\"core\">Scores from the same respondent varied across different scales (although only a little)<\/li>\n\n\n\n<li data-block-type=\"core\">10 point scales reduced the number of detractors, increasing overall score<\/li>\n\n\n\n<li data-block-type=\"core\">5 point scales reduced both detractors and promoters<\/li>\n\n\n\n<li data-block-type=\"core\">Not using an 11 point scale risks losing external benchmarks, as it\u2019s the industry standard.<\/li>\n<\/ul>\n\n\n\n<p>The biggest take away from the study was to remain consistent with the number of points in your scale. I.e., don\u2019t use a scale of 0 \u2013 11 for one survey and then a 5-point scale for another.<\/p>\n\n\n\n<p>This will result in discrepancies between data sets, meaning they will be incomparable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">How is NPS calculated?<\/h2>\n\n\n\n<p>NPS ratings are split into three categories: Promoters, Passives and Detractors. The ratings associated with each category are based on the standard 11 point scale.<\/p>\n\n\n\n<p>Before calculating your score, you must determine the percentage of customers for each category.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" data-block-type=\"core\">Detractors (those who select 0 \u2013 6)<\/h4>\n\n\n\n<p>Detractors are unhappy customers who\u2019ve had a bad experience with your organization at a touch-point. They\u2019re the most likely to jump to a competitor or even impact your reputation through negative word of mouth.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" data-block-type=\"core\">Passives (those who select 7 \u2013 8)<\/h4>\n\n\n\n<p>Passive customers are somewhat happy with your business but are not likely to recommend you to others. You shouldn\u2019t be complacent with passives, they\u2019re also likely to defer to a competitor if left unchecked.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" data-block-type=\"core\">Promoters (those who select 9 \u2013 10)<\/h4>\n\n\n\n<p>These are the people most satisfied with your product or service. These are advocates for your organization, actively recommending you to friends and colleagues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">Net promoter score calculation<\/h3>\n\n\n\n<p>To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters. The number you\u2019re left with is your NPS, it\u2019s as simple as that.<\/p>\n\n\n\n<p>The final score is not expressed as a percentage, but as a number between -100 and +100.<\/p>\n\n\n\n<p>You can test this out for yourself with our <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/nps-calculator\/\">Net Promoter Score calculator<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">What is a good Net Promoter Score?<\/h2>\n\n\n\n<p>Any score above 0 is good, whilst any NPS score over +50 is excellent. Organizations that score over the +70 mark will be providing the best customer experience.<\/p>\n\n\n\n<p>Customer loyalty is inherently linked to their experience with your business, products or services. So, it&#8217;s well worth strategizing ways to <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/customer-experience\/measuring-and-improving-customer-experience\/\" target=\"_blank\" rel=\"noreferrer noopener\">improve customer experiences<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">Benefits of Net Promoter Score<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">1. It can be calculated with a single data point<\/h3>\n\n\n\n<p>Calculating this only requires a single question. Saving time for survey respondents (reducing the chance of <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/survey-design\/survey-fatigue\/\" target=\"_blank\" rel=\"noreferrer noopener\">survey fatigue<\/a>) and for those performing the NPS data analysis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">2. Your score is a sign of business growth<\/h3>\n\n\n\n<p>If your customers are referring your product\/service to friends and colleagues, they have entered the final stage of the customer journey; advocacy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">3. Conducting an NPS survey is effortless<\/h3>\n\n\n\n<p>With a host of online tools available to create, distribute and analyze NPS research, it\u2019s never been easier to measure customer loyalty.<\/p>\n\n\n\n<p>As long as the question is standardized for your organization, it can be used across all contact points. For example, at an event, as part of a website feedback form or following a recent purchase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">4. NPS is malleable<\/h3>\n\n\n\n<p>You can calculate an NPS rating for any of your organization&#8217;s output. Whether it\u2019s your overall brand, a product or customer service. In this way, you can determine which aspects of your business need the most attention and where you\u2019re already doing well.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">5. Measure change over time<\/h3>\n\n\n\n<p>Conducting NPS research at regular intervals is paramount to improving customer relationships. It\u2019s suggested you calculate your score around twice a year, to measure the impact of changes you make and identify seasonal discrepancies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">6. Benchmark against competitors<\/h3>\n\n\n\n<p>Average NPS scores vary from industry to industry. Performing some research into the average score for your industry can provide valuable context to your score. HubSpot has accumulated a list of <a href=\"https:\/\/blog.hubspot.com\/service\/net-promoter-score-benchmarks\" target=\"_blank\" rel=\"noopener\">NPS Benchmarks<\/a> by industry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">Disadvantages of Net Promoter Score<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">1. A single data source can be limiting<\/h3>\n\n\n\n<p>Without open-ended feedback to provide context, NPS scores can often be ambiguous. Because of this, it\u2019s difficult to identify which area of your organization needs improving and where you\u2019re already succeeding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">2. You need a large survey sample<\/h3>\n\n\n\n<p>The opinions of a few customers aren\u2019t representative of the whole. Which segment of your audience, or what aspect of your business, your NPS survey concerns, can also affect what your score will be.<\/p>\n\n\n\n<p>For example, if you calculate NPS for a product that\u2019s doing well, your score will likely be high. But you can\u2019t generalize these results, as they aren\u2019t representative of customers who\u2019re unhappy with other elements of your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">3. Results don\u2019t always lead to instant action<\/h3>\n\n\n\n<p>As mentioned above, collecting data from such a large audience can take time. So, those who&#8217;re unhappy with their experiences aren&#8217;t likely to see positive action quickly.<\/p>\n\n\n\n<p>However, opening a line of communication with these customers can go a long way in maintaining relationships.<\/p>\n\n\n\n<p>Simply let them know you&#8217;ve listened and give them regular updates on what action you plan to take and when.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">4. NPS ratings don\u2019t account for the influence of individuals<\/h3>\n\n\n\n<p>If a well-known CEO or celebrity is a detractor, they&#8217;ll influence the decisions of other customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">5. Solicited feedback may create response bias<\/h3>\n\n\n\n<p>The time and manner of feedback requests may influence the way people respond. The best feedback is unsolicited, as it\u2019ll likely be devoid of any bias created by the researchers. Learn more about <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/survey-design\/response-bias\/\" target=\"_blank\" rel=\"noreferrer noopener\">response bias<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">6. NPS score can be manipulated<\/h3>\n\n\n\n<p>Whether it is intentional or not, employees may only send NPS surveys to happy customers. This would lead to an artificially high NPS score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" data-block-type=\"core\">Tips for improving NPS<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">1. Personalize NPS surveys<\/h3>\n\n\n\n<p>Improving customer relationships is the end goal of NPS. Addressing them by name will strengthen your relationship and encourage unbiased feedback.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">2. Collect reviews regularly<\/h3>\n\n\n\n<p>Your score is not a one-off calculation, it\u2019s a benchmark for development. Make a habit of collecting NPS at customer touchpoints or through <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/email-marketing\/email-marketing-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">email campaigns<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">3. Ask for open-ended customer feedback<\/h3>\n\n\n\n<p>By asking for additional comments, you\u2019ll gain more insight into your strengths and weaknesses as an organization. However, don\u2019t overload customers with open text boxes. That beauty of NPS is its usability and efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" data-block-type=\"core\">4. Open a dialogue<\/h3>\n\n\n\n<p>At the end of your survey, create a contact field for those customers who wish for you to contact them regarding their response. This creates another opportunity for relationship management and insight.<\/p>\n\n\n\n<p>For a full perspective on your customer relationships, couple NPS with other forms of market and customer research. E.g. <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/customer-satisfaction-surveys\/\" target=\"_blank\" rel=\"noreferrer noopener\">Customer Satisfaction Surveys<\/a> (CSAT) and Customer Effort Score (CES).<\/p>\n\n\n\n<p>This isn\u2019t to say that conducting NPS isn\u2019t a worthwhile pursuit. It is essential to identify those in the final stage of the <a href=\"https:\/\/exchange.cim.co.uk\/blog\/five-stages-of-your-customers-buying-journey\/\" target=\"_blank\" rel=\"noopener\">customer buying journey<\/a> (advocacy). But in compiling data from multiple feedback sources, you give more context to your NPS score.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Net Promoter Score? How is NPS calculated? What is a good Net Promoter Score? Benefits of Net Promoter Score Disadvantages of Net Promoter Score Tips for improving NPS What is Net Promoter Score? Net Promoter Score (NPS) is the standard for measuring customer loyalty. This is gauged by their likelihood to recommend your [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12474,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,10],"tags":[],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"featured_image_urls":{"full":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score.png",860,378,false],"thumbnail":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score-150x150.png",150,150,true],"medium":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score-300x132.png",300,132,true],"medium_large":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score-768x338.png",768,338,true],"large":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score.png",860,378,false],"1536x1536":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score.png",860,378,false],"2048x2048":["https:\/\/wp-stagesh.bugfree.co.uk\/wp-content\/uploads\/2020\/09\/Calculate-Net-Promoter-Score.png",860,378,false]},"post_excerpt_stackable":"<p>What is Net Promoter Score?How is NPS calculated?What is a good Net Promoter Score?Benefits of Net Promoter ScoreDisadvantages of Net Promoter ScoreTips for improving NPS What is Net Promoter Score? Net Promoter Score (NPS) is the standard for measuring customer loyalty. This is gauged by their likelihood to recommend your product, service or brand to a friend or colleague. It is the correlation between a customer\u2019s advocacy (i.e., positive word of mouth) and revenue growth that has made NPS a key metric in driving business development. What question do you ask to determine NPS? To measure customer loyalty, you need&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/category\/customer-experience\/\" rel=\"category tag\">Customer Experience<\/a>, <a href=\"https:\/\/wp-stagesh.bugfree.co.uk\/category\/survey-design\/\" rel=\"category tag\">Survey Design<\/a>","author_info":{"name":"Evan","url":"https:\/\/wp-stagesh.bugfree.co.uk\/author\/evan\/"},"comments_num":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net Promoter Score: How to Calculate NPS - Shout.com<\/title>\n<meta name=\"description\" content=\"Measure customer loyalty by calculating your Net Promoter Score to improve retention and reduce customer churn.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/wp-stagesh.bugfree.co.uk\/survey-design\/net-promoter-score-how-to-calculate-nps\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net Promoter Score: How to Calculate NPS - 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