Net Promoter Score (NPS) measures customer satisfaction and loyalty by asking how likely customers are to recommend a brand. It is calculated by subtracting the percentage of detractors from the percentage of promoters, with positive scores indicating good customer sentiment. Organizations can use NPS as a valuable tool to enhance word-of-mouth marketing and understand customer feedback.

1. What is NPS?
Net Promoter Score Explained

3. Introduction
I’m Cathy Reisenwitz. I edit the Customer
Service Blog for Capterra.
We help people find the right software for their
business.
Follow me on Twitter at @CapterraService.
I’m on LinkedIn as well.

4. Theory behind NPS
NPS stands for Net Promoter Score.
1. Customer satisfaction and loyalty correlate strongly with sales.
2. A stated propensity to refer your brand a friend or colleague correlates
strongly with customer satisfaction and loyalty.

5. NPS and profits and growth

6. Recommendations important?

7. Word of mouth today
Three quarters of people talk about brands on social media.
Realistic win in 2003: A customer tells two friends about your brand.
Realistic win in 2015: A customer tell two million friends about your brand with
their blog, Twitter, Facebook, Periscope, Meerkat, Snapchat, Instagram, Vine,
YikYak, WhatsApp, etc.

8. Measure NPS
Starts with a question: “How likely are you to recommend us to a friend?”
Ask your current customers first.
Ask them is after they purchase or after they contact customer service.

9. NPS questionnaire
If you’ve never asked your customers this question, SurveyMonkey has some
templates to help get you started.

10. Most common scale
The most common scale is 0-10.

11. 7-point scale
The 7 point scale from 1-7 is becoming more common.
People are less likely to pick randomly
Possibly because:
● Fewer options are less overwhelming
● Unfamiliarity may throw people off guard, causing them to think before
answering

12. How to calculate NPS
NPS is your percentage of promoters minus your percentage of detractors.
NPS ranges from −100 (meaning everyone is a detractor) to +100 (meaning
everyone is a promoter).
Most companies consider a decent Net Promoter Score to be >0%. Any
positive NPS good. An NPS of +50 is excellent.

13. How to calculate NPS

14. Add up your “promoters,” “passives,” and “detractors.”
If you’re using a 0-10 scale, people who select
● 9 or 10 are promoters
● 7-8 are passives
● 0-6 are detractors
If you’re using a 7 point scale, people who select
● 7 are promoters
● 5-6 are passives
● 1-4 are detractors
How to calculate NPS

15. What percentage of your customers does each group comprise?
1. Export responses from your questionnaire/survey into a spreadsheet.
2. Divide respondents into detractors, passives, and promoters.
3. Add up the total responses from each.
4. Divide the group total by the total survey responses to get the percentage
total of each group. Or use a percentage calculator to make it easier.
5. Subtract the percentage total of detractors from the percentage total of
promoters.
This is your NPS!
How to calculate NPS

16. Thanks!
To learn more about NPS, and customer
service, check out Capterra’s Customer Service
Blog.