NPS stands for Net Promoter Score which is a metric used in customer experience programs. NPS measures the loyalty of customers to a company. NPS scores are measured with a single question survey and reported with a number from -100 to +100, a higher score is desirable
Example of NPS question - How likely is it that you would recommend [Organization X/Product Y/Service Z] to a friend or colleague?
Respondents give a rating between 0 (not at all likely) and 10 (extremely likely) and, depending on their response, customers fall into one of 3 categories to establish an NPS score:
Promoters - respond with a score of 9 or 10 and are typically loyal and enthusiastic customers.
Passives - respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters.
Detractors - Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.
It’s simple to calculate your NPS score. The formula for calculating NPS score is -
% Promoters - % Detractors = NPS Score
For example, if 10% of respondents are Detractors, 20% are Passives and 70% are Promoters, your NPS score would be 70-10 = 60
To get the NPS score, the NPS scores of individual respondents are calculated and then divided by the number of respondents.