Net Promoter Score (NPS): Ultimate Guide For You

Happy customers not only return for repeat purchases but also recommend your business to others. The Net Promoter Score (NPS) is a customer loyalty metric. It measures the likelihood of customers recommending your business to others.

John visits a restaurant, orders food, and is treated to a fantastic meal and top-notch service. When he finally leaves, he has a satisfied grin on his face. John undoubtedly had a fantastic time.

But will he recommend the restaurant to his friends and family?

This is where the NPS Rating score comes in.

The restaurant can ask John a simple question. “How likely are you to recommend this restaurant to your friends and family?”

The restaurant can calculate its NPS score by rating his response on a scale of 0-10. Consequently, understand John’s loyalty.

But not all NPS rating scales are created equal. Some are as satisfying as a hot cup of coffee on a cold morning. Others are as confusing as a Rubik’s cube.

Let’s look at some NPS survey examples. So you can ensure that your consumers rate you with clarity and precision.

Table of Content:

• What Is a Net Promoter Score (NPS)?
• Why Net Promoter Score (NPS) is important?
• How to calculate NPS score?
• NPS Rating Scale Examples with Question
• How do you interpret the NPS score?
• What are the advantages and disadvantages of NPS?
• How to Create an NPS Survey?
• Wrap Up

What Is a Net Promoter Score (NPS)?

A Net Promoter Score (NPS) is the ultimate litmus test for customer loyalty. It’s like a report card for your business. Except instead of grades, you get a number between 0 and 10. And instead of your parents signing it, it’s your customers who are the judges.

It measures the likelihood of customers recommending your business to others. Fred Reichheld introduced this concept in 1993. Later, Bain & Company and Satmetrix adopted it in 2003. Since its inception, it has become a widely used metric for customer satisfaction.

The NPS score is calculated based on a question: “How likely are you to recommend this business to a friend or colleague?” Customers rate their responses on a scale of 0-10. 0 being “Not at all likely” and 10 being “Extremely likely.”

Based on their responses, customers are divided into three categories:

• Detractors (0-6).
• Passives (7-8).
• Promoters (9-10).

Why Net Promoter Score (NPS) is important?

The Net Promoter Score (NPS) holds significant importance due to its capacity to gauge customer loyalty and satisfaction, making it a pivotal metric for businesses worldwide. NPS Rating acts as a litmus test, providing an easily interpretable snapshot of customer sentiment towards a brand or service. Through a straightforward question asking customers how likely they are to recommend a product or service, NPS unveils valuable insights into overall customer experience. Its simplicity facilitates quick comprehension and actionable insights, aiding companies in identifying areas for improvement and fostering customer retention. As an industry-standard metric, NPS enables companies to benchmark their performance against competitors, track changes in customer sentiment over time, and ultimately drive business growth by cultivating a loyal customer base. Its effectiveness lies in its ability to translate customer opinions into a quantifiable metric, empowering businesses to make data-driven decisions aimed at enhancing customer satisfaction and loyalty.

How to calculate NPS score?

The NPS score is calculated by subtracting the Detractors’ percentage from the Promoters’. The resulting score can range from -100 to +100, with higher scores indicating higher customer loyalty and satisfaction.

Let’s consider an example. Suppose you conduct an NPS survey, and the results are as follows:

• Promoters: 50%
• Passives: 30%
• Detractors: 20%

First, calculate the percentage of Promoters and Detractors to calculate the NPS score. In this case, the percentage of Promoters is 50%, and the percentage of Detractors is 20%.

Use the formulas below to calculate these percentages.

Next, subtract the percentage of Detractors from the percentage of Promoters:

NPS score = Promoters – Detractors

NPS score = 50% – 20%

NPS score = 30

NPS Rating Scale Examples with Question

Here are examples of instances where you can use an NPS survey rating scale:

• After a recent purchase:

Following a customer’s purchase, you can employ an NPS rating scale. It will assist you in gauging their satisfaction with your products or services.

Sample question:

“On a scale of 0-10, how likely are you to recommend our product/service to a friend or colleague?”

• After an event:

A Net Promoter Score (NPS) rating scale is useful for gathering feedback from event attendees. From this, you can gauge their experience and adjust where necessary.

Sample question:

“On a scale of 0-10, how likely are you to attend our events in the future?”

• After a support interaction:

You can use an NPS rating scale when a customer contacts your support team. It will aid in your understanding of their level of satisfaction with the assistance they received.

Sample question:

“On a scale of 0-10, how satisfied are you with our customer support?”

How do you interpret the NPS score?

Interpreting the Net Promoter Score (NPS) involves understanding the segmented categorization of respondents based on their rating. Scores are divided into three distinct groups: promoters, passives, and detractors. Promoters are enthusiasts who rate the product or service highly, usually scoring 9 or 10. They are likely to advocate for the brand and contribute positively to its growth through referrals. Passives, scoring 7 or 8, are content but not fervent about the brand, and their loyalty might waver. Detractors, scoring 0 to 6, express dissatisfaction and pose a risk to the brand through negative word-of-mouth. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, yielding a score that can range from -100 to +100. A high positive score indicates strong customer loyalty and satisfaction, while a negative or low score signals room for improvement and a need to address underlying issues to enhance customer experience and foster loyalty.

What are the advantages and disadvantages of NPS?

Following are the advantages and disadvantages of NPS.

Advantages of NPS:

• Simplicity: Easy to implement and understand due to its single-question format.
• Benchmarking: Enables comparison against competitors and tracking changes in customer loyalty.
• Identifying Promoters: Helps identify brand advocates who can drive organic growth through referrals.

Disadvantages of NPS:

• Singular Focus: Oversimplifies complex customer relationships, potentially missing nuanced feedback.
• Lack of Detail: Doesn’t provide specific insights into reasons behind scores, requiring additional data or surveys.
• Cultural Variations: Interpretation may vary across cultures, impacting its universal application.

How to Create an NPS Survey?

Let’s say a software company has contracted you to gauge their software’s recognition among customers. You want to conduct a CSAT survey consisting of the following questions;

• How likely will you recommend our software to a friend or colleague?

You want to use the response feedback below.

• Promoters (9 – 10)
• Passives (7 – 8)
• Detractors (0 – 6)

How do you go about this?

Let me show you how you can create your survey in Google Forms. Then distribute among your intended audience.

1. 1. Add your question to the “Untitled Question” field. To add options, write “Option 1” and “Add option” for more options.
   2. Click the share button and send the link to your audience.

1. 1. Collect responses, and when you’re ready, click the three dots next to “Link to Sheets”.

1. 1. From the dropdown menu, download the responses as a .csv file.

1. Open the downloaded file in Excel.

Best Tool to Analyze NPS Survey Data

The responses load in Excel as below.

Data from NPS surveys might be difficult and time-consuming to analyze. With the appropriate tools, you can swiftly examine and comprehend the outcomes. The CSAT Score Survey Chart is the finest resource for analyzing NPS survey data.

The CSAT Score Survey Chart facilitates calculating and tracking the NPS score.

ChartExpo is a comprehensive data analysis tool that helps you visualize and analyze NPS survey data. It offers a wide range of visualizations to help you understand the following;

• The NPS score.
• Customer satisfaction levels.
• Areas for improvement.

Benefits of Using ChartExpo

• ChartExpo is the perfect wingman for creating insightful data visualizations without breaking a sweat. Whether you’re a beginner or a pro, ChartExpo’s got you covered with its intuitive UI. It requires no coding expertise.
• If you’re particular about aesthetics, you’ll love ChartExpo’s customization options. They let you put your spin on the visuals to match your brand.
• You don’t need to spend a fortune to use this effective tool. You can use ChartExpo for $10 monthly. Plus, it has a free 7-day trial.

How to Install ChartExpo in Excel?

1. Open your Excel application.
2. Open the worksheet and click the “Insert” menu.
3. You’ll see “My Apps”.
4. In the office Add-ins window, click “Store” and search for ChartExpo on my Apps Store.
5. Click the “Add” button to install ChartExpo in your Excel.

ChartExpo charts and graphs are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and create beautiful visualizations in a few clicks in your favorite tool.

To analyze your data in Excel, convert it to the format below.

Question	Rating	Responses
How likely are you to recommend our software to a friend or colleague?	0	33
How likely are you to recommend our software to a friend or colleague?	1	40
How likely are you to recommend our software to a friend or colleague?	2	36
How likely are you to recommend our software to a friend or colleague?	3	43
How likely are you to recommend our software to a friend or colleague?	4	39
How likely are you to recommend our software to a friend or colleague?	5	39
How likely are you to recommend our software to a friend or colleague?	6	42
How likely are you to recommend our software to a friend or colleague?	7	74
How likely are you to recommend our software to a friend or colleague?	8	67
How likely are you to recommend our software to a friend or colleague?	9	144
How likely are you to recommend our software to a friend or colleague?	10	260

Follow through as I turn these boring survey results into an insightful visualization using ChartExpo.

1. • To get started with ChartExpo, install ChartExpo in Excel.
   • Please navigate to the INSERT menu and select My Apps.

1. 1. 1. • Select ChartExpo and click the “Insert” button.
      

1. • Once it loads, choose the “CSAT Score Survey Chart” from the charts list.

1. • Select the data from the sheet and click the “Create Chart From Selection” button.

1. • ChartExpo will generate the visualization below for you.

Insights

• 50% of customers are willing to endorse the product.
• 33% are not interested in promoting the product.
• 17% do not support or oppose promoting the product.
• Subtracting the percentage of detractors from the percentage of promoters results in an NPS score of 17.

FAQs:

What is the difference between NPS and eNPS?

The main difference between NPS (Net Promoter Score) and eNPS (Employee Net Promoter Score) lies in their focus. NPS measures customer loyalty and satisfaction, typically through a single question asking how likely customers are to recommend a product or service. On the other hand, eNPS gauges employee satisfaction and engagement within an organization by asking how likely employees are to recommend their workplace as a great place to work.

What are the three types of NPS?

There are three types of respondents in NPS categorization: promoters, passives, and detractors. Promoters score 9 or 10, indicating strong advocacy; passives score 7 or 8, representing moderate satisfaction but less loyalty; detractors score 0 to 6, signaling dissatisfaction and potential risk to the brand.

Why does the NPS score matter?

NPS score matters as it serves as a vital indicator of customer loyalty and satisfaction. A high NPS score correlates with business growth, as it reflects a larger base of loyal customers who are likely to recommend the brand, leading to increased revenue through referrals and improved customer retention.

What is a good NPS rating?

Technically, you can consider any score above zero a “good”. It implies that you have more promoters than detractors. A score above 50 is excellent, and anything above 80 is world-class.

How are NPS ratings calculated?

You calculate NPS ratings based on an NPS survey question. With respect to their responses, customers are into three categories:

• Detractors (0-6).
• Passives (7-8)
• Promoters (9-10).

To calculate the NPS score, subtract the percentage of detractors from the percentage of promoters.

How often should I conduct an NPS survey?

Regular NPS surveys are recommended to track changes in customer satisfaction and loyalty. The frequency of NPS surveys depends on factors such as;

• The size of the customer base.
• The nature of products or services.
• The potential for change in customer experience.

What is the difference between Detractors and Passives?

Detractors are customers who give a score between 0 to 6. This indicates they are unhappy with your business. Passives give a score of 7 or 8. This shows they are satisfied but not enthusiastic enough to recommend your business to others.

Wrap Up:

Customer satisfaction is essential for high retention rates. One of the finest methods to achieve that is through the Net Promoter Score (NPS). Using an NPS survey rating scale is the best option for calculating customers’ likelihood to endorse your business.

When conducting an NPS survey, it’s essential to take it seriously. If clients respond truthfully and genuinely, then you should do the same. Refrain from tricking customers into saying what you want to hear.

Also, remember that an NPS rating scale survey is not a universally applicable answer. An NPS survey tailored to your business is the best kind to create.

ChartExpo comes with a wide range of data visualizations. You can create insightful charts and graphs. Moreover, you can compare NPS scores from different time frames.

The possibilities are endless. Therefore, do not hesitate to take your analysis to the next level with ChartExpo.