When it comes to improving your marketing and sales efforts, one of the many metrics you'll track includes the . This a dataset that can provide valuable insights about how well your current strategies are working, along with gauging your overall customer satisfaction.
If you're new to NPS tracking, explore these NPS crunching insights to learn how to calculate NPS, understand how NPS can strategies, and see how pivotal NPS can be for your company's growth.
Why the Net Promoter Score matters
Every effort you make to review data and analytics can be helpful. But the Net Promoter Score matters because it measures overall customer happiness by tracking brand promoters and detractors.
An NPS calculator shows you the quality of your customer service through the customers' eyes. It can help you spot areas of improvement when it comes to customer experiences. You can also develop new methods for increasing , gaining competitive advantage, and driving more company growth. And because it's a flexible formula that's easy to use, companies can tap into it across a host of different segments, events, and efforts.
With the NPS, you can keep an accurate finger on the pulse of your customer engagement and satisfaction.
The Net Promoter Score (NPS) Formula
The Net Promoter Score (NPS) Formula is a metric of the Net Promoter System. Leading companies that are using it see, on average, double the growth of competitors in their space.
Here are a few key elements for successfully calculating your NPS:
Set up the NPS System
The key question you'll ask of every customer after they’ve had a meaningful engagement with your product or business is, “How likely are you to recommend (your product or company) to a colleague or friend?”
This question is best sent after the user has had a meaningful interaction with your company, where they know whether they’d recommend you to a friend. For example, just after they’ve completed the or engaged with your company for the first time.
You can send the question to the customer via email, SMS, or in-app (on web or mobile)—or try a multi-channel approach. Consider which channel is the best fit for your business’s .
There are benefits to each channel. For example, email has lower but a higher level of detailed qualitative feedback, whereas SMS and in-app yield a higher volume of responses by grabbing users’ attention in the places they spend most of their time.
Apply the formula
The formula you'll use to calculate your company's NPS is as follows:
NPS = % of promoters - % of detractors
To effectively crunch the numbers, you'll need to collect data that represents both company promoters and detractors.
Count the responses
Using surveys, online polls, and review interviews, you can collect all responses to the key NPS question. Include all your responses in the total count, so you can effectively gauge an overall snapshot across all your collected data. Responses should include the score as well as written feedback.
Group the responses
Using a scale of one to ten, start assigning your customer responses into three key groups. Zero to six scores represent "not likely at all" answers, which are detractors. Nine and ten scores represent "extremely likely," which are promoters. Customers who respond with scores of seven and eight are labeled as "passives."
Calculate your NPS
With your responses properly grouped by score, you can begin to apply values to the NPS calculation. To find your percentages of promoters and detractors, follow these calculations:
% of promoters = (Number of promoters / Number of respondents) x 100
% of detractors = (Number of detractors / Number of respondents) x 100
With your percentages tallied, you can calculate your NPS by subtracting your percentage of detractors from your percentage of promoters. Or just use our NPS calculator below!
What's a good Net Promoter Score?
Technically, any Net Promoter Score totaling more than zero is a positive score, indicating that you have more promoters than detractors.
However, ideal results are NPS totals over 20, which are considered "great." Any score over 50 is considered amazing. And if you're aiming for the top percentile, scoring above 80 is the holy grail of NPS scoring. For example, Apple’s NPS is 68 (as of March 2023) and is considered an excellent score.
Analyzing and actioning on your NPS feedback
Once you have your NPS ratings, the next step to capitalize on the data involves analyzing your metrics. Look for key points those scores can tell you about your customer service or audience engagement. From there, you can develop strategies and plans of action to improve your customer’s experience.
Present data
Effectively visualize your NPS results in order to make it easier to spot insights. This will help you move through analysis quickly and share with teams easily.
Some effective ways to visualize both the qualitative and are through bar charts, pie charts, line charts, word clouds, and , among others. There are products you can use that specialize in NPS data analysis and visualization.
Look for trends
Start by looking at various trends your NPS might be telling you. Because you can use NPS surveys to gather intel at various stages of your customers' journeys, you can use those scores to spot trends, including areas where your company might excel or need to improve.
Close the loop
Identify gaps in your customer experience based on your NPS scores, and develop strategies to close those specific gaps in the overall customer journey. Ongoing NPS evaluations will highlight where customers are losing momentum so your teams can prioritize their engagement efforts better, informing future roadmaps and strategies.
Audit your NPS program
Use your NPS ratings to validate your processes. Routine audits of your NPS program can help you revise and polish how you , analyze results, and improve how you affect change.
Expand your program
Consider expanding your NPS program into other segments of your business to collect even more customer satisfaction data. Use it to evaluate post-sale experiences, online purchase experiences, and special event experiences.
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