The Net Promoter Score or the NPS is a standard market research metric to measure customer loyalty, brand advocacy and satisfaction. It measures how likely a customer will recommend a company’s products or services. 

It consists of a single survey with the following question: 

“How likely is it that you would recommend [Organization/Product/Service] to a friend or colleague?” . The NPS analysis is done by deducting the percentage of detractors from the percentage of promoters. 

The NPS classifies respondents into 3 major categories: Passives, Detractors and Promoters. 

Passives: Passives are indifferent customers who do not lean on either side of the scale. 

Detractors: Detractors are unhappy customers who have had a bad experience with your brand. 

Promoters: Promoters are loyal customers who consistently purchase from the brand. This quantitative customer loyalty metric measures customer experience and predicts business growth. Click here to create a step-wise NPS survey with Merren.

The Net Promoter Score result has an index ranging from -100 to 100. Any score above 0 indicates a good score. 

Here are the basic guidelines:

Above 0: Your business has more promoters than detractors, indicating a healthy baseline.

Above 20: A reasonable score, indicating that your business is improving.

Above 50: This is ideally an excellent score with a higher number of promoters. 

Above 80: This is a world-class score and can be difficult to achieve. Brands that have scores of 60 and above are technically industry leaders. 

A good NPS score also depends on benchmarks that vary as per the industry. It depends on:

• Customer expectations: for example in the hospitality industry.
• Nature of interaction: across industries that share or store sensitive information on clients (medial and financial institutions).
• Market saturation: this depends on the number of competitors. 

If you are looking to improve your Net Promoter Score metrics, read more about it here.

The Net Promoter Score calculation is straightforward.

Calculate by subtracting the percentage of detractors from the percentage of promoters. 

Steps to calculate NPS:

1. Create an NPS survey on Merren for free. 
2. Divide respondents into three main groups as per the ratings: promoters (9 or 10) ,passives (7 or 8), detractors (0 to 6). 
3. Calculate the percentages of each group. Divide the number of people in each group by the total number of respondents.  

NPS formula:

NPS= % of promoters – % of detractors. 

For example, if 70% of respondents are Promoters, 20% are Detractors, and 10% are passives, your NPS would be 70-20=50. Passives are not taken into account in the formula. 

The scores can range from -100 to 100.

Calculate your NPS results with our instant NPS calculator: Click here to get NPS results now.

Yes. 70% is an outstanding Net Promoter Score. Scores above 60 is considered world class. This means there is a higher level of customer satisfaction, upgraded products and brand loyalty. However, a score above 60 cannot always be the benchmark for every industry. Each industry has its challenges so the NPS results will vary.

Merren is a superfast customer feedback tool that has free NPS templates. Try it here for free.