How to measure Net Promoter Score effectively
Net Promoter Score places customers into one of three groups: Promoters, Passives and Detractors.
In answering the NPS question type, respondents are given a standard scale that ranges from 0 (not at all likely) to 10 (extremely likely). Organizations often ask the Net Promoter Score question via an online survey after customer service interactions, purchase transactions or as an ongoing customer pulse study. Based on how a customer responds to the question, you classify them into one of three groups:
- Detractors = 0 – 6
- Passives = 7-8
- Promoters = 9-10
Promoters are your customers who are loyal and enthusiastic about your organization and will continue buying and referring others. Promoter referrals fuel viral growth that helps bring in new customers at a lower acquisition cost. The cutoff score for Promoters is intentionally set high at 9 to ensure that the customer is an exceptionally enthusiastic fan.
Passives are generally satisfied customers but lack the enthusiasm of Promoters. A ranking of 7 or 8 is no doubt impressive, but experience has shown that this group is still vulnerable to competitive offerings and not immune to defection.
Detractors are a potentially dangerous bunch that are often unhappy and can diminish your brand through negative word of mouth. A customer who rates your organization between 0 and 6 requires outreach to resolve issues before they do any damage. The best organizations work to correct grievances of Detractors and work to convert them to Promoters.
Once you have classified your customers, you calculate your score by subtracting the percentage of Detractors from the percentage of Promoters.
NPS = % Promoters – % Detractors
NPS = (# Promoters / Total Respondents) – (# Detractors / Total Respondents)
The score is generally displayed as a whole number by dropping the percent sign for the final number and scores range from anywhere between –100 (all Detractors) to +100 (all Promoters).