KPI Library – Net Promoter Score

Net Promoter Score

Description:

Based on the premise that the customer experience of your goods/services will place them into one of the following groups (Promoter, Passive, Detractor). The Net promotor score is based on a single question in order to measure overall customer satisfaction “How likely are you to recommend the product/service to a friend or college”? It follows that organisations identified with better rates of Promoters Vs Detractors are likely to grow more rapidly than those of their competitors with poorer relative performance. This measure identifies satisfaction “from the customer’s eyes” and with appropriate sample size, data collection and analysis over time provides information on customer satisfaction trends.

Calculation:

Based upon a scale of 1 – 10 (1 bad > 10 good)

  • Promoter – score 9 – 10
  • Passive – score 7 – 8
  • Detractor – score 1 – 6

Example:

100 customers asked the question. 12 score between 1-6, 20 score between 7-8, 68 score between 9-10.  Therefore 12/100 * 100 = 12%, 68/100 * 100 = 68%.  68%-12% = 56%.  NPS = 56%