Net Promoter Score (NPS) is a customer loyalty metric. It measures how likely customers are to recommend a company, product, or service to others. NPS helps businesses assess customer satisfaction, identify areas for improvement, and predict future growth. Scores range from -100 to 100, with higher scores indicating stronger customer loyalty.
Customers often share their experiences on social media and online reviews. However, people are more likely to post about negative experiences than positive ones. This makes it hard to know if most of your customers are actually happy with your business.
That’s where Net Promoter Score (NPS) comes in. NPS is a way to measure customer loyalty and track whether your customers are having a good experience. If you’re not tracking your NPS, you might be losing customers without even knowing it!
Also, studies show that increasing your net promoter score can also boost your revenue. According to the London School of Economics, a 7% increase in NPS can lead to a 1% growth in revenue.
So, want to create an unforgettable customer experience and grow your business? In this article, let’s understand the net promoter score definition and its importance. Also, we will see the net promoter score formula and calculation, along with some industry-approved NPS benchmarks.
What is the Net Promoter Score?
Net promoter score is a way to measure how happy your customers are and how likely they are to recommend your business to others. Generally, it is based on one question: “On a scale of 0 to 10, how likely are you to recommend our business to a friend or colleague?”
Now, the responses gathered are analysed as follows:
| Rating | Interpretation |
| Customers who give a 9 or 10 |
|
| Customers who give a 7 or 8 |
|
| Customers who give a 0 to 6 |
|
Why is the Net Promoter Score Important?
Always remember that the net promoter score is not just about the number! Instead, it is about learning from customers and making your business better. By tracking it, you can understand the quantum of progress your business is making in terms of customer experience (CX). Also, you can predict how well your business can grow through word-of-mouth recommendations!
Let’s gain more clarity and learn why it matters:
- A high NPS means customers are satisfied with your business. They will likely tell others about it (which brings in more customers).
- If your NPS is high, it shows that you have a strong relationship with your customers. If it’s low, it means there are issues to improve (poor product quality, low CX)
How Can You Do Net Promoter Score Calculation?
The net promoter score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. To calculate your net promoter score, you can follow these steps:
- Find the percentage of Promoters (people who gave 9 or 10).
- Find the percentage of Detractors (people who gave 0 to 6).
- Subtract the percentage of Detractors from the percentage of Promoters.
You can use the following net promoter score formula to determine it:
Net Promoter Score = % of Promoters – % of Detractors
Let’s gain more clarity through an example:
Let’s say you survey 100 customers, and they rate your business on a scale from 0 to 10.
Step 1: You categorised the customers as follows:
- Promoters (score 9 or 10): 60 customers
- Neutral (score 7 or 8): 30 customers (Neutrals are not used in net promoter score calculation)
- Detractors (score 0 to 6): 10 customers
Step 2: Next, you calculate the percentages:
- Percentage of Promoters = 60100 x 100 = 60%
- Percentage of Detractors = 10100 x 100 = 10%
Step 3: Apply the net promoter score formula
- Net Promoter Score = % of Promoters – % of Defractors
- Net Promoter Score = 60 – 10 = 50
So, the net promoter score is 50. This means customer satisfaction is good, but there is room for improvement.
Net Promoter Score Range
Please note that the net promoter score can be between -100 to 100. Here,
- 100 = All customers are happy (Promoters)
- -100 = All customers are unhappy (Detractors)
- 0 = Equal number of Promoters and Detractors
As per general industry understanding, the net promoter scores are interpreted as follows:
| NPS Benchmarks | Remarks | General interpretation |
| 70 and above | Excellent | Customers love your business |
| 50 to 69 | Good | Most customers are happy |
| 30 to 49 | Neutral | Mixed customer opinions |
| 0 to 29 | Poor | Customers are not very satisfied |
| -100 to -1 | Very Poor | Many unhappy customers |
Ideally, you should track your net promoter scores regularly. This allows you to see if your business is improving. Consequently, you can take the necessary actions to make customers happier!
How to Improve Net Promoter Scores?
Below are some proven techniques to improve your net promoter score:
1. Focus on Better Customer Experience (CX)
Customer experience (CX) is how people feel when they interact with your business. A low net promoter score means customers are not happy with their experience. By improving CX, you can increase satisfaction and loyalty.
This can be done by:
- Listening to customer feedback and finding out what they like or dislike.
- Offering consistent service across all channels (website, store, phone, social media).
- Making it easy for customers to get information and support.
- Ensuring products/ services meet customer expectations.
For example, several large retail businesses use Omnichannel Customer Experience (OCX) surveys to understand what affects their net promoter score. These surveys look at areas like:
- Customer service
- Product availability
- Pricing
- Delivery
Additionally, try to be customer-centric (putting the customer first). This attitude will allow you to identify customer needs better and improve services. Always remember that the better the customer experience, the higher your NPS.
2. Deliver Great Customer Support
Even if you have a great product, poor customer service can make customers switch to your competitors. That’s because if customers don’t get the help they need, they become unhappy and usually stop using your business.
However, if you provide good customer support, they will appreciate it and recommend your business to others. You can do so by:
- Responding to customer questions quickly with minimum waiting time.
- Using live chat to assist customers in real-time (avoid making them wait for emails or phone calls).
- Train your team to handle customer issues professionally and politely.
Additionally, you can follow the technique of “co-browsing” (where support agents and customers browse a website together). In this approach, your agents help customers with forms, applications, or troubleshooting. This creates a more personal connection with customers and increases net promoter scores.
3. Measure Customer Feedback Regularly
If you want to improve your net promoter score, you need to check your customer feedback regularly. That’s because customer needs change over time. If you don’t monitor your NPS, you might miss signs of dissatisfaction. This leads to lower customer loyalty.
To make a regular scrutiny of net promoter score, you can:
- Regularly conduct NPS surveys
- Analyse survey responses and try to understand why some customers are unhappy.
- Take action based on feedback.
For example, say you notice that many customers complain about slow delivery. Now, you should improve your shipping process to boost satisfaction. By tracking and acting on feedback, you can turn your unhappy customers (Detractors) into happy customers (Promoters) and strengthen your brand’s reputation.
4. Provide Self-Service Options
Most customers want to find answers to their questions quickly. They even don’t want to contact customer support in most cases. Research shows that about 92% of customers say they would use a knowledge base (online self-help resources) if available. Thus, to increase your net promoter score, you should provide self-service options like:
- FAQ pages
- Help centers
- Product videos
- Graphical tutorials
Additionally, try to build a searchable knowledge base where customers can find helpful articles. Self-service also reduces the workload for your support team and allows them to focus on more complex issues.
Popular Net Promoter Score Benchmarks
Net promoter score allows you to understand how happy customers are with your business. But what makes a “good” NPS score? A good NPS score depends on industry NPS benchmarks, but here’s a general guide:
- Below 0 = Bad (More unhappy customers than happy ones)
- Above 20 = Good
- Above 70 = Excellent (Top-performing companies)
To get a better idea let’s have a look at a survey that analysed 1,50,000+ companies worldwide and found how businesses perform:
- Bottom 25% of companies: NPS of 0 or lower (Not great; a lot of unhappy customers)
- Average (Middle 50%): NPS of 32 to 44 (Decent customer satisfaction)
- Top 25% of companies: NPS of +72 or higher (Highly satisfied and loyal customers)
Rely on Atidiv to Boost Your Net Promoter Score!
By using the net promoter score, you can measure customer loyalty and business growth. A high NPS indicates strong customer satisfaction. It leads to more referrals and repeat business. Conversely, a low NPS signals issues that need attention, such as:
- Poor customer service
- Product quality concerns
- Unsatisfactory user experience
Please note that improving NPS requires a structured approach. And, we at Atidiv specialise in helping businesses achieve this. By engaging with all customer segments (promoters, passives, and detractors), our expert team at Atidiv helps you refine your processes. A notable example of our success is our collaboration with a UK-based online tire retailer. Through strategic improvements, Atidiv increased the company’s NPS from 40 to over 75!
Partner with Atidiv today and achieve outstanding NPS growth!
FAQs On Net Promoter Score
1. Why is my net promoter score low even though I have repeat customers?
A low NPS means customers may not be fully satisfied (even if they return). They might have no better option or find switching difficult. Now, to improve NPS, you should focus on their concerns:
- Better service
- More affordable pricing
- Faster responses
2. How often should I check my net promoter score?
Ideally, you should check your NPS at least every 3-6 months. However, if you have made major changes (new product, price adjustment, or customer service improvements), you should preferably track it monthly.
Through, regular monitoring you can resolve issues quickly and keep customers happy.
3. What should I do if my NPS is negative?
A negative net promoter score means more unhappy customers. To improve it, you should first try to find the main issues through customer feedback. Next, improve service quality and resolve complaints quickly. Be aware that even small changes, like faster support or easier returns, can make a big difference.
4. How can I turn neutral customers into promoters?
Neutral customers (scoring 7-8) are satisfied with your business but not excited. To convert them into promoters, you can:
- Offer better service
- Surprise them with perks (discounts, loyalty programs)
- Ask them for feedback and show you care about their experience
When they feel valued, there is a higher possibility of them becoming promoters.
5. Can net promoter score really impact my revenue?
Yes! A higher NPS means more satisfied customers. It even leads to positive word-of-mouth and repeat business. Studies show that a 7% increase in NPS can result in a 1% revenue boost. Thus, keeping customers happy directly affects growth and profitability.
