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:

Get started with our free NPS survey template

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:

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.

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:

5. 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
• Page load speed

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

Compare your Net Promoter Score to benchmarks in your industry

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?

How Qualtrics can help you calculate and improve your NPS score

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.