Net Promoter Score
The Net Promoter Score is abbreviated to NPS and is a key figure that is intended to provide an indication of the success and customer satisfaction of a company.
This is used to calculate how loyal customers are to a company and whether they would recommend it to others, for example.
Calculation of the Net Promoter Score
To determine the Net Promoter Score, companies ask their customers about their willingness to recommend the provider to others. The respondents express their satisfaction with the help of values. These values range from 0 (very unlikely) to 10 (very likely).
Only one question is necessary to determine the NPS.
The question is: How likely would you be to recommend this company to friends or colleagues?
There is also an option for respondents to fill in an open response field and provide written feedback. However, this is not a must, but a voluntary matter.
Based on these answers, a key figure, the so-called Net Promoter Score, can be calculated. This is intended to provide information on customer loyalty and satisfaction.
The following gradations can be derived from the scale:
- 0 – 6: Detractors: They will not recommend the company to others. It is also possible that they will even advise friends and acquaintances not to become one of your customers. They also tend to write bad reviews.
- 7 – 8: Indifferent: This group is not entirely dissatisfied, but is also unlikely to recommend the company to others. They are therefore neutral towards the company.
- 9 – 10: Promoters: Promoters have a positive association with your company and are most likely to recommend it to others.
To calculate the Net Promoter Score, you only need the percentage of promoters and detractors. The percentage of detractors is then subtracted from the promoters.
This means that the NPS value is always between -100 and 100.
The practical thing about the value is that this survey is simple and particularly quick and easy to carry out. As a result, you can expect a very high response rate.
