# How to Calculate Net Promoter Score (NPS) in 2023 - Qualtrics (2023)

## How to Calculate Your Net Promoter Score (NPS)

NPSIt is an indicator that informs about your general stateCustomer experiencequality, based on the likelihood that your current customers will recommend your product, service, or organization. To calculate NPS, you must use the following Net Promoter Score (NPS) formula:

Total % Promoters - Total Detractors % = Net Promoter Score

It simply means:

The total percentage of people who would recommend your brandTotal % Who Wouldn't = Your Net Promoter Score

For example, your Net Promoter Score calculation might look like this:

70% of promoters10% of critics = 60 is your NPS score.

Get started with our free NPS survey template

(Video) Net Promoter Score (NPS): How to Calculate it and Why It Matters (#AdMath)

## NPS calculator

The score is a whole number between -100 and 100 and indicates satisfaction with the brand experience. Use the online NPS calculator below to calculate your NPS based on your survey responses.

## Why should you calculate NPS?

Wcustomer service programs, managers and employees need to quantify customer sentiment to benchmark performance and work to improve it by measuring customer experience. Markers indicating satisfied customers are the brandloyaltypositive levelconsumer satisfactiono Higher reported quality levelsCustomer service.

This data can have a real impact on your future business strategy, budget allocation, and product development plans. In these and other cases, NPS is used to get a representative picture of what your customer base thinks of you.

But how do you know exactly who would recommend your brand and who wouldn't? And how do you know if your NPS score is an average score, a great score, or a poor score? Keep reading to know more.

## More detailed NPS calculations

Think of one of your favorite personal brands. With the brand in mind, answer the question:

“On a scale of 0 to 10, how likely are you to recommend this brand to a friend or colleague?”

As a customer, this question forces you to place value on your brand experience and asks you to stick with it. Your peers and friends are people who trust you for your good sense of quality, and if they have a lousy experience after following your recommendation, their opinion of you will also be marred by negative associations.

So, the question really is: will recommending this brand elevate or jeopardize your personal stature through trusted, hard-earned relationships?

The Net Promoter Score formula replicates this process to a greater extent, operating on a business-to-business level and asking your existing customers directly.

The scale is scored from 0 (completely unlikely) to 10 (very likely). Depending on the responses, customers fall into one of 3 categories:

• promotersThey are customers who responded with a score of 9 or 10. They tend to be loyal and enthusiastic customers.
• passiveThese are customers who responded with a score of 7 or 8. These customers are satisfied with your services, but not enough to be considered promoters.
• criticsPlease answer with a score from 0 to 6. These are dissatisfied customers who are unlikely to buy from you again and may even discourage others from buying from you.

By examining the proportions of each group along the scale, it can be seen that there is more opportunity to be seen as critical than as passive or supportive.

### Your score is measured using the following NPS calculation formula:

Subtract the percentage of detractors from the percentage of promoters.

(Video) Why Top Companies Are Choosing Qualtrics

total % of promoters% total critics=net promoter result

(The passive percentage is not used in the Net Promoter Score formula.)

For example, if 10% of all responses come from detractors, 20% are passive, and 70% are promoters, your NPS score would be 70-10 = 60. Your NPS could be between -100 and 100. The ideal score is 100 , assuming that 100% of respondents are promoters.

Note: When you calculate the Net Promoter Score, the results can also be negative. When Charles Schwab, the inventor of the NPS, rated the Corporation in 2003, he stated that the NPS was -35.

By knowing your Net Promoter Score and the types of customers that fit into each group, you can take steps to turn detractors into promoters. But how can you collect the data you need to get started?

Get started with our free NPS survey template

## Collect feedback and create Net Promoter Score data sets

### Use NPS surveys to collect data

You might be tempted to start emailing customers right away, but organization is key to success. First, ask yourself the following questions:

• What aspect of the business do I want to measure: brand, service or product?
• how are my clientssegmentarioAnd what segments will I have to monitor?
• Does my current technology setup allow me to store results, interpret data, and share reports?
• Do I want automated information and personalized alerts to speed up search times, or do I have time to research it myself?

Once you've determined the answers to these questions, you can start planning your NPS outreach and surveys. Keep in mind that you will need a large number of responses in order to calculate your NPS more accurately. Higher response rates mean more data and deeper insight into real-world feedback from your customers. However, it's worth remembering that customers at the extremes of the NPS scale (very loyal and very dissatisfied) can skew your results because they're more likely to share your opinion.

### How NPS Survey Software Can Help

Researchers and customer experience experts take this as their basis.survey softwareit doesn't include everything they need, such as automated data analysis or the ability to combine or compare multiple NPS exercises.

Software NPS de Qualtricsallows you to measure, analyze and improve your Net Promoter Score in 5 easy and personalized ways:

1. Customers can conveniently provide feedback through multiple channels, including email, messaging apps, mobile devices, and more.
2. Use flexible dashboards, preconfigured reports, and filters to segment customers by loyalty, monitor improvements, and provide relevant information to make business decisions in real time.
3. Use custom alerts to act quickly to improveCustomer experiencedrytarget groupI 'close the loop' with dissatisfied customers so you can turn a bad experience into a great one.
4. You can look at long-term NPS exercises to see how the critical rate decreases and the overall score increases. Here's a simulation showing how a company's NPS can fluctuate when critics become promoters:

(Video) How to Create Net Promoter Score Survey with Qualaroo

1. Identify customers at risk.maselnica(Passives and Criticals) so you can take action to get them back. For example, if they rate your product or service on a scale of 0 to 6, you might add "We're sorry you're disappointed with our service." What can we do to improve in the future?

## Design an NPS survey with additional questions

Measuring just one NPS question is the best way to get a benchmark score for your customer service. But how to improve it? What data should you collect along with your NPS benchmarks to understand what affects your NPS score?

This is where the key factors come in. By understanding the customer experience in more detail, you can determine the most important aspects of the experience that contribute to this score. It can also help reduce if there are biases in your responses that only people with the strongest views respond.

For example, let's say you're an online retailer. When a customer makes a purchase from you, you send them a messageconsumer survey. In addition to asking how likely they are to recommend your business, you can ask them:

• How easy was it to find the product you were looking for?
• What motivated you to buy from us today [multiple choice]
• How easy were the following parts of yoursjourney? [multiple choice]

Additionally, you can also use operational data from things like site analytics to overlay things like:

• time on page
• The referring URL
• Number of page views

This is just a snapshot of the type of data you can download. The more you include, the more data points you need to identify, which actually affects the NPS score calculation.

## Analysis and use of the NPS score

NPS calculations are useful not only to see how your brand compares to customer expectations, but also to gauge how competitive your brand is against others in your industry.

Agood net promoter resultfor your business may not be enough to outperform the competition. If others in your industry are consistently retaining customers at a much higher rate than your business, they are likely to attract their customer base to your business as well.

Use Qualtrics' free NPS Benchmark report to see how your Net Promoter Score calculations stack up against the competition. Using NPS data from more than 300 companies in 20 industries,Qualtrics NPS Benchmark Reporthelps you identify new areas of potential growth by comparing your overall NPS score to others in your market.

### Leverage your data to improve results and increase customer satisfaction

After calculating your NPS survey results and asking your audience for key factors, you need to have meaningful data points to be able to perform advanced analytics likeAnalysis of key factorsor multivariate regression to identify specific ways to improve customer service and NPS scores. In addition to the NPS Industry Benchmark Report results, you'll have access to a wealth of data to help you start building customer loyalty.

Key areas of the customer experience that you can focus on to improve your NPS survey results include:

• Client path:In the collected responses and open feedback, which steps stood out as problematic?
• User experiences:How have site performance and usability affected customer loyalty?
• Commitment to the brand:Do you only engage with a small number of detractors when they reach you, or do you actively close the loop to turn detractors into advocates?
• Relationships with customers:Is rewarding loyalty or customer retention a lower priority for your brand than building new relationships?

(Video) How does Net Promoter Score (NPS) works within Zendesk Support

Measuring customer loyalty is easy with Qualtrics. Candevelop an NPS programthat automatically sends an NPS survey to every touchpoint across all the channels customers prefer to use.

Don't just calculate the NPS – increase the number of loyal customers by taking action, integrating the customer experience as a priority throughout the organization. Identify customers at risk with a targeted NPS survey that gives you actionable results and a roadmap to improve customer relationships.

## FAQs

### How do you calculate NPS Net Promoter Score? ›

How to calculate your NPS® (Net Promoter Score) Calculating your NPS score is as simple as tallying up your responses and subtracting the percentage of detractors from the percentage of promoters. For example, if 60% of respondents are promoters, 10% are detractors, and 30% are passives, your NPS would be 60-10=50.

How do I change my Net Promoter Score in qualtrics? ›

There is no way to change that under the Net Promoter Score. We have to make it a multiple choice, set horizontally.

What is NPS in qualtrics? ›

NPS Software: Net Promoter Score Survey Tool - Qualtrics.

Which question is most commonly used to calculate net promoter score NPS? ›

The standard NPS question is “On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?”. In addition, a good NPS survey will also ask follow-up questions to understand why, for example: What's the main reason for your score? What can we do to improve your score?

What is NPS Net Promoter Score? ›

Net Promoter Score (NPS) is a metric that organizations use to measure customer loyalty toward their brand, product or service. Many companies use NPS as part of their customer relationship management (CRM) strategy, as the metric is easy to form and calculate.

Can you calculate NPS on a 5-point scale? ›

Many businesses use a 5-point NPS scale to measure the customer experience in transactional NPS surveys.

What is the Net Promoter Score if survey results report 25% promoters 20% passives and 55% detractors? ›

The NPS is not expressed as a percentage but as an absolute number lying between -100 and +100. For instance, if you have 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5.

Does NPS have to be on a 10 point scale? ›

Fred Reichheld, who developed the NPS system, thought it necessary to have 11 points in the scale so respondents would not mistake 1 as the highest point. However, some businesses also use 10 point and 5-point scales to determine their score.

How is NPS survey score calculated? ›

Add up the total responses from each group. To get the percentage, take the group total and divide it by the total number of survey responses. Now, subtract the percentage total of Detractors from the percentage total of Promoters—this is your NPS score.

How is NPS measured? ›

Your Net Promoter Score is simply the percentage of customers who are promoters (those who scored 9 or 10) minus the percentage who are detractors (those who scored 0 to 6).

### What are the 2 questions for NPS? ›

NPS survey structure

The Net Promoter Score survey consists of a two-part questionnaire. The first part asks your customers to rate – the rating question – your business, product or service on a scale of 0 to 10. The second question is a follow-up, open-ended question as to why the specific score was given.

Should NPS questions be first or last? ›

Position of the NPS Question in the Survey

Research shows a significant position effect for the “Recommend” question in surveys. In short, you get higher NPS scores if you ask the question first, lower if you ask it last in the survey.

Is the NPS scale 0 10 or 1 10? ›

The Net Promoter Score® (or NPS) measures customer experience and loyalty using a two-question survey. The first question: How likely is it that you would recommend my brand/product/service to a friend or colleague? (Answers are based on a 0–10 scale.) It's really that simple. That's all.

What are the 3 categories of NPS? ›

Based on the number that is given, the customer is then placed into one of the three categories: Promoter, Passive, or Detractor. These categories describe how the customer feels about the product or service, their loyalty to the company, and whether or not they would recommend it.

How is NPS data gathered? ›

To calculate NPS, survey customers and see how likely they are to recommend your business on a scale of 0-10. Organize responses into Detractors (0-6), Passives (7-8), and Promoters (9-10). Then, subtract the percentage of Detractors from the percentage of Promoters to determine your overall Net Promoter Score.

Can NPS be a score of 1 to 5? ›

The range of the answer options used in the NPS survey question is the Net Promoter Score scale. NPS system is similar to the multiple-choice questions; however, the options are limited to 1-5 or 0-10 in the NPS scale. The scale 1-5 is more common in NPS mobile app surveys as it is more compact and needs less space.

What is an example of a NPS score? ›

Net promoter score example: Take the percentage of promoters minus the percentage of detractors. So, if you have 40% Promoters and 20% Detractors, your NPS score would be 20 (40 - 20 = 20).

What is the best scale for NPS? ›

71-100: This is the Holy Grail of NPS, and rarely attainable. A company with a score in this range is considered to be among the absolute best in their industry.

What is NPS measurement scale? ›

The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score.

How many questions are a typical Net Promoter Score? ›

Net Promoter Score NPS survey question

Typical NPS surveys consist of just one question. Considering your complete experience with our company, how likely would you be to recommend us to your friend or colleague? The answer options are arranged horizontally on a scale of 0-10.

### Why is NPS on a scale of 1 10? ›

A quick NPS history lesson

In that article Reichheld details the development of 'the' question and scale (0 to 10 with 0 = “not at all likely”, 5 = “neutral” and 10 = “extremely likely”) to measure the likelihood of a consumer to recommend the brand.

Is 5% of NPS good? ›

Generally, financial experts recommend saving between 10% to 15% of your income for retirement. If you're a high-income earner, you may want to consider contributing more to your NPS account to take advantage of the tax benefits and build a larger retirement corpus.

Why do we calculate NPS? ›

What is the Net Promoter Score? NPS is a benchmarking tool for customer satisfaction. The NPS method, which is based on a two-minute survey, gives insights about customer loyalty by measuring customers' willingness to recommend a business to a friend or acquaintance.

How do I run a good NPS survey? ›

Let's look at a 5-step best practice for NPS data analysis.
1. See which engagement metrics define your customers. ...
2. Use all your data to interpret qualitative research. ...
3. Perform the verbatim analysis. ...
5. Identify the root causes of customer's feedback.

What are typical questions in a NPS survey? ›

The standard NPS question is “how likely are you to recommend us on a scale from 0 to 10,” but you don't need to limit yourself to asking it verbatim. For the open-ended question that follow, there are also different ways to get feedback from your customers.

What is the lowest possible NPS score? ›

The lowest possible NPS score is -100, implying every customer is a Detractor – an unlikely scenario. A low Net Promoter Score also refers to a value that is below the NPS industry benchmarks.

Can you calculate NPS on a 5 point scale? ›

Many businesses use a 5-point NPS scale to measure the customer experience in transactional NPS surveys.

What is the NPS score at CVS? ›

CVS's Net Promoter Score (NPS) is a 47 with 67% Promoters, 13% Passives, and 20% Detractors. Net Promoter Score tracks whether CVS's customers would recommend using the product based on a scale of -100 to 100.

What is the NPS score percentage? ›

The Net Promoter Score is calculated as the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percentage but as an absolute number lying between -100 and +100. For instance, if you have 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5.

Is NPS a 10 or 11 point scale? ›

NPS scale. The Net Promoter Score scale usually consists of 11 response options; from 0 – 10. Fred Reichheld, who developed the NPS system, thought it necessary to have 11 points in the scale so respondents would not mistake 1 as the highest point.

### What is Walgreens NPS score? ›

Is Walgreens's NPS of 25 considered to be good? Yes, it is. Net Promoter Score is a number from -100 from 100. Scores higher than 0 are typically considered to be good and scores above 50 are considered to be excellent.

How do you assess NPS score? ›

The NPS Calculation Formula

To calculate your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters. NPS = % promoters - % detractors. For example, if 50% of respondents are Promoters, 10% are Detractors, and 40% are passives, your NPS would be 50-10=40.

What is the best practice NPS score? ›

Any NPS above 50 is considered extremely good. However, even companies with top NPS scores (approximately 70) still have room for improvement! But no matter where you're standing, any result greater than 0 is satisfactory—it means that your customers are more satisfied than dissatisfied.

## Videos

1. Qualtrics how to generate reports
(David Plouffe)
2. The #1 Must-Have Metric for Successful Investing!
(René Sellmann)
3. How to predict the drivers of NPS
4. UKISUG x SAP - What is NPS and why is it important?
(UK & Ireland SAP User Group)
5. Qualtrics Tutorial: Question Design
(Jennifer Taylor, PhD)
6. Properly Create Surveys with Microsoft Forms & Export to Excel
(Leila Gharani)

## References

Top Articles
Latest Posts
Article information

Last Updated: 08/10/2023

Views: 5765

Rating: 4.4 / 5 (75 voted)

Author information