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If you aim to unlock the secret behind successful businesses worldwide, let’s dive into the fascinating world of Net Promoter Score (NPS) calculation.
Have you ever wondered, “How is NPS calculated?”
Buckle up. We’re about to embark on a thrilling journey to uncover this mystery.
You run a business and are eager to know what your customers think.
Are they staunch fans or just “okay” with your product or service? The answer lies in calculating your NPS.
Yes, you read that right.
NPS is a simple yet powerful metric that measures customer loyalty and satisfaction. This helps you identify areas of improvement and skyrocket your business.
But how do you calculate it?
This easy-to-follow guide will break down the NPS calculation process into bite-sized chunks. We’ll keep it simple for you to understand and apply to your business.
Also, you’ll learn the following:
Are you excited to learn the secret sauce of successful businesses? Let’s demystify the NPS calculation together.
Before diving into the blog’s core, we’ll address the following question: what is the NPS formula?
Net Promoter Score (NPS) can help you gauge customer satisfaction and loyalty.
With the growing significance of customer experience in today’s competitive landscape, understanding “How is NPS calculated?” can give you the edge.
NPS measures customers’ likelihood of recommending a company, product, or service to their friends, family, or colleagues.
And it’s based on a single, straightforward question: “On a scale of 0 to 10, how likely are you to recommend our company to others?”
The simplicity of this question is one of the reasons Net Promoter Score (NPS) is popular among businesses of all sizes.
Customers’ responses to the question above are grouped into three categories, namely:
Promoters are your most loyal fans. They’re likely to spread positive word-of-mouth about your business.
Passives are satisfied but not enthusiastic customers.
On the other hand, Detractors are unhappy customers who might discourage others from doing business with you.
To calculate NPS, subtract Detractors from Promoters.
The resulting NPS Score ranges from -100 (all Detractors) to +100 (all Promoters).
A positive score indicates more Promoters. (a loyal and satisfied customer base).
Keep reading if you’re curious about collecting NPS (Net Promoter Score) data using a survey.
It’s simple.
Ask participants to rate the likelihood of recommending your product, service, or brand to others, using a scale from 0 to 10. Classify respondents as detractors (0-6), passives (7-8), or promoters (9-10) based on their scores.
To dig deeper, use follow-up questions that explore the reasons behind their scores. This will allow you to gather valuable feedback for enhancing your brand offers.
In the following section, we’ll address the question: how is NPS calculated?
The NPS is a widely recognized Customer Experience (CX) metric that enables you to monitor and enhance your customer experience.
The beauty of NPS lies in its simplicity and scalability.
This makes it accessible to everyone, even those without advanced mathematical skills.
In this comprehensive guide, we’ll address the following: how is NPS calculated for success?
The NPS calculation begins with a single, scale-based question posed to an audience through a survey:
“How likely are you to recommend our brand to a friend or colleague?”
To calculate the NPS, follow these steps:
NPS = (Number of promoters – Number of detractors) * 100 / Total responses
Alternatively, use percentages:
NPS = % of promoters – % of detractors
Let’s delve into the roles of promoters, passives, and detractors in the NPS calculation process.
A promoter awards your brand a 9 or 10 in an NPS survey. This indicates their satisfaction with your product or service and their willingness to recommend it to others.
Promoters are invaluable for positive word of mouth.
Promoters = NPS score of 9-10.
After calculating your NPS, encourage promoters to share testimonials. Positive customer reviews can increase your sales by up to 18%.
Passives assign your business a 7 or 8 in the NPS survey.
This means they’re neither delighted nor dissatisfied with your brand. We recommend you improve your relationship with them to prevent them from becoming detractors.
Passives = NPS score of 7-8
Passives hold significance in your NPS because they could lean either way.
Detractors give your product a score of 6 or below in the NPS survey.
And they’re likely to discourage others from using your products.
Detractors = NPS score of 0-6
Focus on detractors. To repair the relationship before they leave, ask follow-up questions to enhance their experience.
Navigating the world of NPS calculation can be tricky.
Avoiding common mistakes is essential for obtaining accurate and valuable insights.
Below are some key NPS calculation mistakes to sidestep on your journey to achieving reliable insights.
Analyzing NPS scores as a whole can be helpful.
However, segmenting data by demographics, customer type, or other relevant factors can provide more nuanced insights. You can easily identify and address specific issues affecting different customer groups.
A low response rate may lead to a skewed NPS calculation.
And this is because only a small portion of your customer base is represented. To avoid this, encourage participation in your NPS surveys to gain reliable insights.
While promoters and detractors are the primary focus in NPS calculations, don’t neglect passives.
Passives are on the fence. With the right approach, you can convert them into promoters, boosting your overall NPS Score.
While the NPS score is an essential metric, analyzing qualitative data from follow-up questions is equally important.
This will help you to uncover the reasons behind customer sentiment.
Calculating NPS data is only half the battle.
The real value comes from using the resulting insights to drive more profits.
In the ensuing section, we’ll address the following: how is NPS calculated?
To get started, follow the straightforward steps below.
“On a scale of 0 to 10, how likely are you to recommend our brand to a friend or colleague?”
Discover the following: How is NPS calculated using ChartExpo?
Excel lacks charts and graphs you can use to display insights into your survey data.
Enter ChartExpo, a game-changing charting tool that transforms how you examine and display insights into your survey data.
ChartExpo is a user-friendly third-party add-in with an extensive range of survey-based charts.
And the best part?
No programming or coding skills are required!
ChartExpo’s intuitive interface empowers you to craft stunning and compelling charts emphasizing key findings.
A standout feature of ChartExpo is the powerful CSAT Score Survey Chart.
It can help you easily identify trends, patterns, and other key insights that may have gone unnoticed.
Take advantage of ChartExpo’s free 7-day trial to explore its features and experience the benefits first-hand before subscribing.
Priced at just $10 per month, ChartExpo represents a modest investment that can deliver substantial returns.
In the coming section, we’ll use ChartExpo and sample data to demonstrate how you can leverage the CSAT Score Survey Chart.
Before we dive into this, we’ll show you how to install ChartExpo in Excel.
Let’s imagine you operate an online business. You’ve created a survey form to gather customer feedback.
Let’s further assume you gathered the data below.
| Question | Rating | Responses |
| How likely are you to recommend our software to a friend or colleague? | 0 | 30 |
| How likely are you to recommend our software to a friend or colleague? | 1 | 45 |
| How likely are you to recommend our software to a friend or colleague? | 2 | 38 |
| How likely are you to recommend our software to a friend or colleague? | 3 | 40 |
| How likely are you to recommend our software to a friend or colleague? | 4 | 29 |
| How likely are you to recommend our software to a friend or colleague? | 5 | 40 |
| How likely are you to recommend our software to a friend or colleague? | 6 | 50 |
| How likely are you to recommend our software to a friend or colleague? | 7 | 64 |
| How likely are you to recommend our software to a friend or colleague? | 8 | 85 |
| How likely are you to recommend our software to a friend or colleague? | 9 | 150 |
| How likely are you to recommend our software to a friend or colleague? | 10 | 200 |
To get started with ChartExpo in Excel, follow the steps below:
Insights
In the survey, 45% of respondents provided positive feedback. Besides, promoters significantly outnumbered detractors. Only 20% remained neutral.
This resulted in a Net Promoter Score of 10.
To calculate NPS in Excel, categorize respondents into promoters, passives, and detractors.
Find the percentage of promoters and detractors by dividing their count by the total responses. Lastly, subtract the percentage of detractors from promoters to obtain the NPS.
Calculate the NPS score by categorizing respondents as promoters, passives, or detractors.
Find the percentage of promoters and detractors. Subtract the percentage of detractors from the percentage of promoters. The result is the NPS score, ranging from -100 to +100.
To calculate NPS, input the number of promoters and detractors and the total responses.
The formula subtracts detractors from promoters and multiplies by 100. The resulting NPS score ranges from -100 to +100.
We’ve explored the following: how is NPS calculated?
Now it’s time to put that knowledge into action!
Using tools like ChartExpo, you can easily display insights into your customer feedback data to gain valuable insights. Remember, it’s not just about the numbers.
It’s about understanding your customers’ experiences and making informed decisions to improve your business.
ChartExpo offers a user-friendly platform with many easy-to-read charts to help you unlock the full potential of your survey data. Its powerful features and affordable pricing ($10 a month) make it a small investment that can yield significant returns.
Give ChartExpo a try for 7 days at no cost and see the difference it can make.
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