How to Calculate NPS

Net Promoter Score, NPS, is a business term used to quantify the progress of a company. The technique is based on the premise that customers fall into three groups. Promoters are tremendous fans of the business and the products. Passives buy occasionally but might obtain the same product from someone else too. Detractors are customers who are unhappy for whatever reason. NPS takes the number of Promoters and deducts the Detractors from the total to arrive at a score. As a business grows successfully, the score should increase.

Things You'll Need

• Printed customer list

Instructions

1. Mark the customers you consider “Promoters.”

2. Determine the customers considered “Detractors” and mark them.

3. Count the total Promoters and Detractors.

4. Deduct the total number of Detractors from the number of Promoters. For instance, if you have 100 total customers and your list indicates active buying from 75 of them, they are Promoters. Of your 100 customers, 7 buy occasionally or passively and are not part of the equation. The remaining 18 bought once or twice and never came back or have had drastic drops in purchasing. Consider those customers Detractors. Use the formula Promoters – Detractors = Net Promoter Score. So 75 – 18 = 57. In this example, your NPS is 57 percent.

Tips & Warnings

• The average company has an NPS of 5 to 10 percent.

References

• The Ultimate Question: Measuring Your Net Promoter Score