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NPS® Calculation Formula: All you need to know

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Net Promoter Score®  Hub

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NPS® is the leading metric to gauge customer satisfaction and loyalty to your brand. With one single question, it measures how satisfied your customers are with your company and how willing they are to recommend you. 

Learn more about how to perform NPS® score calculation & improve their experience to ramp up your bottom line.

What is the Net Promoter Score®?

NPS Score lowress

Net Promoter Score®, or NPS®, is a type of customer satisfaction metric that uses surveys to quantify and determine consumer satisfaction and loyalty. 

It is also known by many as the “likelihood to recommend” question. As it usually has one question, “On a scale of 0-10, how likely are you to recommend us?”. 

Customers then choose a number to reflect how likely they are to do so. To calculate Net Promoter Score® you can categorize their responses and find the percentage of each group. 

This is the simple definition of NPS®, so now let’s explain the three categories you can device the respondents for NPS® score calculation. 

Calculate Net Promoter Score® with our free NPS® calculator.

Calculate Your NPS®

What are the 3 types of respondents you find in the NPS® calculation?

To calculate NPS®, respondents need to first be categorized into three groups depending on the number they chose in the survey. 

1. Promoters: Respondents who choose a score of 9 or 10.

Promoters aka advocates are the respondents who are most likely to spread the good word about the company and encourage them to purchase the products. They do so by saying positive things about the company.

2. Passives: Respondents who choose a score of 7 or 8.

Respondents who belong to the passive group are unlikely to say anything in regard to the company, and will usually not spread good or bad words about it. They are mostly indifferent to your company. 

3. Detractors: Respondents who choose a score between 0-6.

Detractors are the customers who likely didn’t have a good experience with the company and won’t say anything positive about it. It’s also likely that detractors dissuade future customers from interacting with the company by spreading the bad word about it and discouraging people from purchasing from the brand.

This is an important step in the NPS® score calculation since these categories will help determine where to put your efforts and which segment to prioritize. 

Now that we know what question to ask and how to segment the respondents, let’s see the next step i.e., calculating NPS®.

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What is NPS® score calculation formula?

After the survey respondents are categorized into their respective groups, you can use the following formula to calculate Net Promoter Score®:

NPS® = % of promoters – % of detractors

The value of NPS® will range between -100 and 100.

NPS Calculation formula

How to calculate NPS® score?

In order to get a better understanding of how to calculate Net Promoter Score®, let’s take the following example:

Let’s assume that company XYZ sent out an NPS® survey to 500 customers.

100 customers respond to the survey with scores ranging from 0-6, 200 respond to it with a 6 or 7, and 200 responded to it with a score of 9 or 10. 

This means that company XYZ has:

  • Promoters: 200
  • Passives: 200
  • Detractors: 100

Now for the NPS® score calculation, we need to find the percentage of promoters and the percentage of demoters.

Percentage of Promoters = (Number of Promoters /Total number of Respondents) x 100  

Promoters% = (200/500) x 100 = 40%

Percentage of Detractors = (Number of Detractors/Total number of Respondents) x 100 

Detractors% = (100/ 500) x 100 = 20%

Now that we have all the values we need, we can use the formula to calculate the NPS® score:

NPS® = % of promoters – % of detractors 

NPS® = 40% – 20% = 20%

Therefore, company XYZ has a net promoter score of 20, and this value is positive because there are more promoters than detractors. If company  XYZ had more detractors than promoters, they would have a negative value as their NPS® score.

Well, this net promotion score calculation was easy since it had small values. But when you conduct NPS® surveys you will have bigger values. You will need a calculator that automatically calculates NPS®, helps reduce the research time, and makes the analysis seamless.

What are the 2 NPS® score calculation methods?

While surveying a large target market you can’t rely on pen & paper calculation. It will make the process tiring and long. You might also end up with the wrong data. 

It’s better to adopt an online survey software that not only allows you to create a survey but also to calculate NPS® scores. 

We will discuss 2 methods you can use to calculate your NPS® survey data. 

NPS® Calculation using Online Calculator 

If you have gathered the number of responses received by each score from 0 to 10, you can simply put the number of responses in the online calculator. 

  • Visit Voxco’s NPS® Calculator. 
  • Add the number of responses for detractors, passives, and promoters into the calculator. 
  • Let our NPS® calculator deliver the result. 

Calculate NPS® using a Survey Tool 

If you are using a survey tool to gather NPS® data, the tool already hosts a calculator that auto-analyzes and displays the score. 

Using an online survey tool that supports NPS® surveys you don’t have to export the data and manually calculate it. This saves the data from any error. Moreover, the NPS® functionality allows you to monitor changes in the score and track progress. 

Now that we have established the process of NPS® score calculation, let’s move on to the other side of the coin. Here on, we will discuss what is considered to be a good NPS® score, its importance, and the types of Net Promoter Score®.

What is a good NPS® Score?

An NPS® score above zero (a positive score) is ideally good for a company as means that the number of people who speak well of the company is higher than the number who speak badly of it. 

However, bigger companies will usually have a score of around 50 or above, signifying that to do well, companies need to make sure that their number of promoters is significantly higher than their number of detractors.

Wondering what will be the cost of conducting survey research using Voxco?

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What is the importance of NPS® score calculation?

The best way to understand why you need to calculate Net Promoter Score® is by understanding the significance of promoters and detractors to a company. 

“Word of mouth” is a tool that can be used by companies to significantly increase their customer base. However, if the company doesn’t satisfy its customers, this tool may also reduce a company’s customer base. Thus, it is important for companies to make sure that most of their customers are satisfied with them and turn them into promoters.

With the introduction of social media and its influence over the masses, one good review can bring a company hundreds or thousands of new customers. Promoters may use social media as a tool to do so, reeling in a larger customer base for the company. 

Word of mouth is one of the important drivers that make NPS® score calculation one of the top metrics. Most researchers also believe that NPS® score is the best metric to evaluate customer loyalty.

What are the types of Net Promoter Score® surveys?

There are two main types of NPS® surveys. Each of these types allows you to evaluate certain factors. The main point of difference between these two types is when and how you sent these to the customers. 

  1. Relationship Surveys
  2. Transactional Surveys

Let’s discuss these two types of Net Promoter Scores®.

1. Relationship Survey:

NPS® relationship surveys are surveys that are sent to a company’s customer base on an interval basis, for example, half-yearly or monthly. You can calculate NPS®  to get an insight into customer loyalty.

2. Transactional Survey:

NPS® transactional surveys are sent to customers after they have certain interactions with the company. For example, after a call with customer service or after the purchase of a product. These surveys focus on getting an insight into customer satisfaction, rather than loyalty.

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Wrapping up;

This sums up how you can calculate the NPS® data on your own and also use online tools. The important step in this is to act on the result. Share the NPS® score calculation report across the organization to empower everyone to contribute and make decisions.

Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.