NPS: What it is and how to calculate it

NPS: What is it?

NPS stands for Net Promoter Score ; It is a system designed to indicate customer satisfaction and loyalty . It is a metric that answers the question: How likely would you recommend us to others?  

The NPS score is, therefore, the score with which a client will evaluate certain key aspects of a service or product provider, such as commercial attention, after-sales support, speed of delivery, pre-sale advice, or the overall quality of the service.  

Additionally, the blogger gets to promote his or her personal brand . By appearing as a guest on a website with a good reputation and a large number of visitors, your notoriety will benefit. 

This score is essentially obtained through satisfaction surveys , in which a company asks its customers to rate their degree of satisfaction. 

What is it for and what are its advantages?

Measure consumer loyalty

The NPS indicator helps a company know the level of satisfaction of its customers. It is based on the premise that, if a customer is satisfied, they will almost certainly recommend the company to other users (friends, acquaintances, work associates).  

Allows you to compare your own performance with that of the competition

Another great advantage of NPS is that it allows the company to evaluate whether its strategies are really functional or if, on the contrary, it should rethink them; By knowing the evaluation that other users give to competing companies, you will be able to develop an appropriate benchmarking strategy .   

Humanize the brand image

If a company offers users the opportunity to give their opinion and rate it honestly, it shows that they really care about providing the best customer experience possible. Therefore, the perception that customers have of the brand will be improved.

How NPS is calculated

The NPS formula requires a first categorization of the responses obtained , so that, on a scale from 1 to 10, with 1 being “totally dissatisfied” and 10 being “totally satisfied”, customers or users can be divided into three large groups: 

• A promoter client (very committed) will have answered between 9 and 10.  

• A passive user (slightly loyal) will have answered between 7 and 8.  

• A detractor (a dissatisfied customer or user) will have answered between 1 and 7.  

Of the total responses collected, a percentage (a specific weight) is assigned to each type of client. For example, in a survey of 20 clients:

• 12 have turned out to be promoters (60%).

• 7 have been passive (35%).

• 1 has been a detractor (5%).

Next, the percentage of detractors is subtracted from that of promoters (the percentage of passive ones is not counted) ; In this example, the NPS would be 60 – 5 = 55%. 

If the result is greater than 50%, the NPS is considered positive; Otherwise, it is implied that the company still has room for improvement.

Now that you know what NPS is, you may be interested in developing some sets of questions to find out first-hand how loyal your clientele is. From this information, you will be able to make the decisions you consider appropriate to improve your customer experience.

What is it for and what are its advantages?

Measure consumer loyalty

The NPS indicator helps a company know the level of satisfaction of its customers. It is based on the premise that, if a customer is satisfied, they will almost certainly recommend the company to other users (friends, acquaintances, work associates).  

Allows you to compare your own performance with that of the competition

Another great advantage of NPS is that it allows the company to evaluate whether its strategies are really functional or if, on the contrary, it should rethink them; By knowing the evaluation that other users give to competing companies, you will be able to develop an appropriate benchmarking strategy .   

Humanize the brand image

If a company offers users the opportunity to give their opinion and rate it honestly, it shows that they really care about providing the best customer experience possible. Therefore, the perception that customers have of the brand will be improved.

How NPS is calculated

The NPS formula requires a first categorization of the responses obtained , so that, on a scale from 1 to 10, with 1 being “totally dissatisfied” and 10 being “totally satisfied”, customers or users can be divided into three large groups: 

• A promoter client (very committed) will have answered between 9 and 10.  

• A passive user (slightly loyal) will have answered between 7 and 8.  

• A detractor (a dissatisfied customer or user) will have answered between 1 and 7.  

Of the total responses collected, a percentage (a specific weight) is assigned to each type of client. For example, in a survey of 20 clients:

• 12 have turned out to be promoters (60%).

• 7 have been passive (35%).

• 1 has been a detractor (5%).

Next, the percentage of detractors is subtracted from that of promoters (the percentage of passive ones is not counted) ; In this example, the NPS would be 60 – 5 = 55%. 

If the result is greater than 50%, the NPS is considered positive; Otherwise, it is implied that the company still has room for improvement.

Now that you know what NPS is, you may be interested in developing some sets of questions to find out first-hand how loyal your clientele is. From this information, you will be able to make the decisions you consider appropriate to improve your customer experience.