NPS explained simply – This is what Net Promoter Score means

The Net Promoter Score, or NPS for short, is a key figure that can provide information about how satisfied customers are with a particular company. In this post we tell you all about the use of NPS and how the score is calculated.

Using the Net Promoter Score

Good customer satisfaction is not only important for a company’s image, but for its overall success.

• The Net Promoter Score makes it possible to calculate how loyal customers are to a particular company.

• The score is used worldwide, across industries and by numerous companies.

• It is used to easily incorporate customer feedback into new company processes and to optimise the company’s work in terms of customer satisfaction.

• When customers are surveyed, they are usually asked how likely they would be to recommend the company to others.

• If the company scores only negatively on this question in the evaluation, it can then try to identify the reasons for customer dissatisfaction and work to improve in these areas.

This is how the NPS is calculated

The calculation of the Net Promoter Score is very simple. Customers give their feedback on a scale of 1 to 10 as part of a survey.

• This scale results in three different categories in the evaluation.

• The first category includes the values 0 to 6. When clients give these values, they are called detractors in the evaluation. It is very likely that these customers will not recommend the company to others, but may even advise against it. In addition, detractors sometimes write bad ratings or reviews.

• With an NPS of 7 to 8, these are indifferent customers. They are not particularly dissatisfied with the company, but would not necessarily recommend it either. These values can be neglected for the calculation of the NPS.
  • With a value of 9 to 10, the customers are promoters. They perceive the company very positively and are likely to recommend it to others.
  The NPS is calculated by subtracting the percentage of promoters from the percentage of detractors. The NPS value is therefore always between -100 and 100.
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