Net Promoter Score

Net Promoter Score

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The Net Promoter Score (NPS) was conceived by Fred Reichheld while he was on vacation in the Caribbean. Inspiration can strike anywhere!

1. What is a net promoter score?

The Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of customers recommending a company, product, or service to others.

It is based on a simple question: "On a scale of 0 to 10, how likely are you to recommend us?"

Respondents are categorized as Promoters (score 9-10), Passives (score 7-8), or Detractors (score 0-6). The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score ranging from -100 to +100.

2. What is a good net promoter score?

A good Net Promoter Score (NPS) can vary depending on the industry and specific company, but generally speaking, a positive NPS is considered good for your call center management.

NPS scores can range from -100 to +100. Typically, scores above 0 are seen as positive, while scores above 50 are considered excellent.

However, it's important to keep in mind that what constitutes a good NPS can vary based on factors such as industry benchmarks, customer expectations, and the competitive landscape.

It's best to compare your NPS against your own historical data or industry standards to assess its performance.

3. How to calculate net promoter score?

For net promoter score calculation, follow these steps:

Step #1: Conduct a survey: Ask your customers the following question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to others?"

Step #2: Categorize respondents: Based on their responses, categorize customers into three groups:

  1. Promoters: Those who respond with a score of 9 or 10.
  2. Passives: Those who respond with a score of 7 or 8.
  3. Detractors: Those who respond with a score of 0 to 6.

Step #3: Calculate percentages: Calculate the percentage of respondents in each group based on the total number of survey respondents.

Step #4: Calculate the NPS: Subtract the percentage of Detractors from the percentage of Promoters to obtain your Net Promoter Score. The NPS can range from -100 to +100.

Here's the net promoter score calculator:

Net Promoter Score Formula
Net Promoter Score Formula

The Passives are not directly included in the NPS calculation. However, they can still influence overall customer sentiment and provide valuable feedback for improvement.

So that’s it about NPS. Hope this helps.

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