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A complete guide to calculating NPS

By Ricardo Singh

Updated: May 20, 2020, first publication: May 18, 2020

Calculating your NPS has never been easier!

The NPS or Net Promoter Score is commonly used as a tool to assess customer satisfaction. It is a simple question that could measure a customers' level of attachment to a brand.

Today, many businesses base their customer satisfaction analysis solely on the NPS. But, is the NPS a good index of customer satisfaction?

Even though the NPS provides insights on a customer’s overall satisfaction with a product or service, the result actually reflects a customer’s ability to recommend the product or service, not their actual level of satisfaction.

Here is a complete guide to calculating NPS, how to analyze it, and tips on how you can improve it!

What is a Net Promoter Score?

The term Net Promoter Score* was introduced by strategy consultant Frederick F. Reichheld in the 2003 Harvard Business Review article: The One Number You Need to Grow.

It is a business metric that is particularly appreciated by the management and operational staff of businesses because it is easy to understand and implement.

To get a Net Promoter Score, businesses must ask customers the following question:

How likely is it that you would recommend our company/product/service to a friend or colleague?

This survey takes place after customers use a product or service of your brand.

The scoring for this answer is most often based on a 0 to 10 scale (0 being "Not at all likely" and 10 being "Very likely"). And, sometimes there are additional qualitative questions. These questions dive deeper into the “why” behind a customer's initial NPS rating.

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