What is NPS?

NPS = Net Promoter Score.  This is a calculation used to determine the type of customers your company is creating by asking the question, “Would you recommend us to people you know?”

Depending on their answer, they fall into one of 3 categories: Ravers, Ranters, or Passives.  The Net Promoter Score calculation is found by taking the percentage of promoters, less the percentage of detractors.

                               % of Ravers - % of Ranters = NPS


Detailed explanation

The Net Promoter Score is a powerful measurement tool that helps to improve company culture and customer service. After all, how can you improve what you can’t measure?  The Net Promoter Score is calculated from the feedback your customers give about their experience with your company by answering a simple question, “would you recommend us to people you know?”

Their satisfaction values range on a Likert scale from 0 to 10, 0 being extremely unlikely to recommend and 10 being extremely likely to recommend. Then these answers are put into categories.  If a customer selects a 0 through 6, they are called ranters (or detractors), people who will speak negatively about your company to people they know.  If a customer selects a 7 or 8, then they are considered “passives,” customers who were not very impressed, are not loyal to your company and are vulnerable to competing offers. They have no problem going to your competitors.

Finally, if a customer responds with a 9 or 10, then they are called ravers (or promoters). These are customers who are very pleased with your company and will not only give you repeat business, but they will tell their friends and colleagues positive things about your company. In effect, they promote you, giving the calculation its name, “Net Promoter Score.”

Using our Customer Satisfaction Survey, your company is able to accurately calculate its Net Promoter Score, as we include this question for you and tally the results automatically. The more customers who complete your surveys, the more accurate your Net Promoter Score will be. The Net Promoter Score calculation takes your percentage of detractors, subtracts your percentage of promoters, and equates to your Net Promoter Score.

                                 % of Ravers - % of Ranters = NPS



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