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How do you measure Net Promoter Score®?

NPS
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Divya Kandwal
September 24, 2019
2
mins read

Net Promoter Score®  is a metric used by companies to measure Customer Loyalty. Additionally, it also appraises the health of a company and its Growth potential.

It was first developed by Frederick Reichheld in his seminal paper, ‘The One Number You Need to Grow’. Now, it is used widely by companies to gauge Brand Loyalty.

How do you calculate Net Promoter Score®?

Net Promoter Score® is based on Recommendation. And, recommendation drives Growth. Consequently, a high Net Promoter Score® is an indicator of high growth.

NUMR, a customer experience management (CXM) company calculates Net Promoter Score® based on one simple question.

“How likely are you to recommend us (product/service) to a friend or a colleague?”

Here, 0 stands for the least likely and 10 the most.

Net Promoter Score® scale Numr Research Text Analytics customer feedback

Subsequently, based on the score they give, customers are divided into 3 categories-

1. PROMOTERS

2. PASSIVES

3. DETRACTORS

Who are the Promoters in Net Promoter Score®?

Net Promoter Score® promoter numr research

They are customer who give a score of 9 or 10.

Promoters are ardent fans of your Brand. Also, they are your most loyal customers. Additionally, they drive up recommendations through positive word of mouth.  Therefore, they are organic Growth and Expansion.

Who are the Passives?

Net Promoter Score® passive numr research

Passives are the customer who provide a score of 7 or 8.

These are semi-satisfied customers. Mostly, they do not care for your brand. They are neither fans nor haters. Furthermore, they are quite susceptible to offers from your competitors.

Who are the Detractors in the Net Promoter Score®?

Net Promoter Score® Detractor

Detractors refers to the customers who respond with a score of 6 or less.

These are extremely dissatisfied, angry customers with a high possibility of Churning. Additionally, they damage your brand via negative word of mouth. Listening to and satisfying detractors should be the top priority of all companies.

Now, the Net Promoter Score® is calculated by subtracting the percentage of Detractors from Promoters.

Net Promoter Score® measure Numr

Furthermore, the Net Promoter Score can range from –100 to 100 conceptually. It could be –100 if all customers are Detractors. Conversely, it could be 100 if all customers are Promoters.

*NPS® is the registered trademark of Bain and Company, Satmetrics and Fred Reichheld


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