NPS

What is a Net promoter score?

The Net Promoter Score (NPS) is a vital metric used to estimate customer satisfaction and loyalty. It is calculated by asking customers how likely they are to recommend your product or service on a scale from 0 to 10. Those who respond with a 9 or 10 are considered "Promoters," those with a score of 7 or 8 are "Passives," and those from 0 to 6 are "Detractors." The NPS is the percentage of Promoters minus the percentage of Detractors.
Understanding NPS provides a precise measure of customer advocacy and potential for growth. By analyzing NPS, marketers can identify the drivers of customer loyalty and areas needing improvement. Optimizing your NPS can lead to more effective marketing strategies, improved customer service, and, ultimately, a more substantial brand reputation. This makes NPS an indispensable tool in today's competitive market.

How to calculate Net promoter score?

To calculate the Net Promoter Score (NPS), subtract the percentage of Detractors (customers who rate you 0-6) from the percentage of Promoters (customers who rate you 9-10). Passives (scores 7-8) are not included in the calculation.

(N Promoters - N Detractors) / Total Responses * 100

What is bad Net promoter score?

A bad Net Promoter Score (NPS) is generally any score below 0, indicating that a company has more detractors than promoters. This suggests customer dissatisfaction and potential challenges in customer loyalty and retention. Industry benchmarks for considering an NPS as poor can vary: in telecommunications and utilities, scores might average around 0 to 10, which are lower due to competitive and service challenges. Similar scores would be considered very poor in more customer-focused industries like retail or hospitality. A bad NPS signals the need for strategic improvements in customer service, product quality, or overall customer experience.

What is good Net promoter score?

A good Net Promoter Score (NPS) varies by industry, but generally, a score above 0 is seen as positive, and scores above 50 are excellent. High scores indicate strong customer loyalty and satisfaction. For benchmarks, software companies average around +30, retail typically sees +40, while financial services can range around +35. Factors defining a good NPS include industry standards, competitive landscape, and targeted customer demographics. Consistently measuring and comparing against these benchmarks is essential to understand the relative performance of your NPS.

Our key templates to track Net promoter score

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How to improve Net promoter score?

Enhance Customer Service

Focus on improving the quality and speed of your customer service interactions. Training staff to handle inquiries and problems effectively can lead to higher satisfaction rates, turning passive customers into promoters.

Gather and Act on Feedback

Regularly collect customer feedback and act on it. Understanding the reasons behind customer dissatisfaction and addressing these issues can prevent negative scores and convert detractors into promoters.

Improve Product Quality

Ensure your product or service meets customer expectations consistently. Upgrading product features, fixing bugs, and exceeding market standards can boost customer satisfaction and elevate your NPS.