Tiny Tip Tuesday #33

Tiny Tip Tuesday #33

NPS Calculation

Net Promoter Score (NPS) is a key metric used to measure customer opinions and loyalty. It also gives you insights on the willingness of your customers to recommend your product or service to others. A typical NPS question would look like: "On a scale of 0 to 10, how likely are you to recommend our product to your friends and family?" The response to this question divides the participants into three different buckets based on the range of scores they select: Promoters (scale points 9 and 10), Passives (scale points 7 and 8), and Detractors (scale points 0 through 6).

Let's break this down to see how you can calculate the NPS.

Assume that you received 60 responses, out of which 30 were promoters, 20 were passives, and 10 were detractors. Calculate the percentage for each group (divide the group total by the total number of responses and multiply the answer by 100).

Here's what you'll achieve:
(Answers are rounded)

Promoters - 30/60 * 100 = 50%
Passives - 20/60 * 100 = 33.3%
Detractors - 10/60 * 100 = 16.7%

The difference in the percentage of detractors and promoters will give you the score.
% Promoters - % Detractors = NPS

The NPS in this case is: 50% - 16.7% = 33.3%

This formula can also be written as:
NPS = (Number of Promoters - Number of Detractors) / (Number of Respondents) x 100.

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