How to calculate the NPS
• Promoters 9-10
Happy customers, who are likely to recommend your service.
• Passives 7-8
Customers who will not recommend your service but will also not use negative word of mouth against you. “Passives” have a high potential of becoming promoters. Therefore, it makes sense to find out how you can improve their experience to make them more satisfied.
• Detractors 0-6
Unhappy customers, who will not recommend your service, plan to cancel their business with you or, even worse, will advise against using your service.
NPS is expressed as a number from -100 to 100. When you have more detractors than promoters, your score will be negative.
For example, if 80% of respondents were Promoters and 10% were Detractors, your NPS is 70.
NPS = % Promoters – % Detractors.
It is useful to follow up with open-ended questions about the “Why.” For example, “What was the reason for your score? What would have changed your score?”. Thanks to this, you will get great insights on how to increase the likelihood of recommendations.
How to improve the NPS
• Provide value regularly
• Be transparent with customers
• Have a great customer support
• Ask customers for feedback to improve your service
• Learn from churned customers
What to do with all these metrics? How can you use cohorts to get your metrics game to the next level?
When you start, use industry benchmarks to get a gauge of how you are currently performing. However, as already stressed initially, benchmarks are only helpful to get a first indication of growth. It is much more meaningful to measure your own numbers and find trends for further development.