What is Net Promoter Score? 

Net Promoter Score (NPS) measures customer satisfaction and loyalty, in which customers can recommend or rate your services/product on a scale of 1 to 10. Understanding customer satisfaction and loyalty is essential for success in today's highly changing business processes.

Net Promoter Score (NPS) is a valuable tool that helps businesses to measure their performance and help them to make customer-centric strategies. Read on to learn more about how to calculate NPS and its significance for customer satisfaction. 

NPS and its Significance for Customer Loyalty and Satisfaction

NPS acts as an indicator to check for the expansion of business potential by limiting the bond with customers. When the NPS of a  company is high, it represents a strong bond with customers leading to a rise in word-of-mouth marketing, product promotion, and referrals. 

How to Calculate NPS (Net Promoter Score)?

To calculate NPS, you need to subtract the percentage of critics from the percentage of promoters. The result can range from -100% to +100%, with higher scores signifying higher customer commitment and advocacy. 

The NPS (Net Promoters Score) is calculated using significant references. 

• Promoters: These are the people who respond with a 9 or 10. They are highly likely to recommend your business.
• Passives: These are the people who respond with a 7 or 8. They are satisfied but need to be more enthusiastic to promote your business actively.
• Detractors: These people respond with a score from 0 to 6. They are unlikely to recommend your business and may have opposing opinions.

Calculation of the NPS: Subtract the percentage of detractors from the percentage of promoters. 

Thus the formula calculation of NPS is shared as follows: NPS = % Promoters - % Detractors.

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