#nps score

These days, people have countless ways to share their thoughts about a business. From posting on social media to providing unfiltered thoughts through SaaS in app surveys, you should always take customer feedback seriously. Customer feedback is crucial to success in modern business, and failing to collect and use it can set your company back.

Understanding Customer Needs

Ultimately, your goal as a business is to serve customers and address their needs. While you might develop your product, service or app with a core demographic in mind, things change. Needs evolve, and your business can fall by the wayside if you're not keeping up with what customers want.

Customer feedback is a fantastic way to understand what people want from your business. It can help you fine-tune your current offering while evolving with the ever-changing needs of your biggest supporters.

Identifying New Opportunities

Are you looking for ways to expand your offering or tap into a new market? The best way to do that is by collecting customer feedback. Using SaaS in app surveys is a fantastic way to learn more about what your customers are after. It's about more than understanding their needs.

For instance, you might learn about a common frustration that has nothing to do with your current product, app or service. If enough customers bring up that pain point, you may find it worth developing a solution.

Improving Your Product

Even the most high-quality products aren't perfect. But gathering feedback can help you get there. Surveys can highlight areas that need improvement. The data you collect can guide development teams to fine-tune your product or service, allowing you to provide the best customer experience.

It's how businesses continue to build upon their goods and services. Instead of making guesses on what to focus on, you can rely on feedback to deliver precisely what people want and need.

Boost Customer Loyalty

Customers love it when businesses take their feedback seriously. When you use surveys to improve products, meet user needs and discover opportunities that benefit your customers, people will have all the reasons they need to continue supporting your company.

The Net Promoter Score® is one of the world's leading and the most popular Customer Experience metric for measuring customer satisfaction and loyalty. It is a pivotal predictor of business growth since it determines how likely customers are to do business with you again and recommend you to others. The Net Promoter Score is measured using NPS surveys with a simple NPS question:

“On a scale of 0 to 10, how likely is it that you would recommend our organization to a friend or colleague?”

Based on the score given via an NPS survey, the customers are classified into three different categories. These NPS Categories are:

Detractors (0-6)

Detractors are considered to be very unsatisfied. They are less likely to repurchase and may speak negatively about the brand among other potential buyers.

Passives (7-8)

Passives are neither looking at speaking ill nor positively about your brand. They are likely to be swayed by better deals and offers by your competitors.

Promoters (9-10)

Promoters are brand loyalists, customers who are most likely to recommend your brand to others, as well as be your brand ambassadors.

The individual responses to your NPS surveys combined together form the overall Net Promoter Score. But now comes the important question – how to calculate NPS?

Here’s a simple formula to begin with:

Net Promoter Score Formula

To calculate NPS, we use a simple NPS formula where we subtract the total percentage of Detractors from the percentage of Promoters to determine your overall Net Promoter Score.

For example, if your % Promoters are 80% and % Detractors 30%, then your

Net Promoter Score = 80% - 30% = 50

NPS Score ranges from -100 to 100.

How to Calculate NPS?

There's only one standard (and right) formula to calculate the Net Promoter Score, as laid out by Bain & Co. Based on how you conduct the NPS Survey, you can use various methods to derive the Net Promoter Score. Let's explore them below. 

3 Methods to Calculate the Net Promoter Score  

Calculate NPS using Excel

Calculate NPS using Online Calculator

Calculate NPS using NPS Survey Tool 

How to Calculate Net Promoter Score in Excel?

Calculating the Net Promoter Score manually is a tedious and time-consuming task. But thanks to Excel since it has made NPS Calculation an easy task. You can calculate NPS by using the COUNTIF function. It is the statistical function that counts the number of cells that contain data (NPS Scores). Calculating the NPS via Excel is not rocket science, with just a few steps you can create your own NPS Calculator in Excel or Google Sheet.

Step 2 - Now separate the responses in each category (detractors, passives, and promoters) and count them. Say, the scores given by respondents are contained in Column C. So, the function for finding the number of responses for:

Step 3 - Now you can find the percentage of each category by using the simple formula: Number of Responses from (different NPS audience - Detractors, Passives, and Promoters) ÷ Total Number of Respondents x 100.

For  Example: Say, you've sent an NPS Survey with the NPS questions and you've received 40  responses from your customers:

10, 7, 5, 9, 9, 9, 6, 4, 9, 8, 9, 9, 9, 10, 10, 10, 4, 5, 5, 7, 7, 10, 10, 10, 5, 6, 10, 10, 9, 8, 10, 10, 8, 7, 9, 9, 9, 10, 9, 7

Now paste the score and arrange them in your Excel sheet.

Detractors - 8 responses

Passives - 8 responses

Promoters - 24 responses

When you calculate the percentages for each group, you get 20%, 20%, and 60% respectively.

In an excel sheet, you can get your NPS Score either by calculating manually or by using the simple Net Promoter Score formula: Net Promoter Score = % of Promoters - % of Detractors

NPS = 60% - 20% = 40

So, Your Net Promoter Score is 40

You can also use the COUNTIF functionality formula to find your net promoter score:

ROUNDUP((100*((COUNTIF(B:B,”>8″)-COUNTIF(B:B,”<7″))/COUNT(B:B))),0)

Note - Net Promoter Score is always shown as just an integer and not a percentage.

How to Calculate NPS using Online Calculator?

Calculating the Net Promoter Score is very easy by summing up all the responses and then subtracting the percentage of detractors (those who rated between 0-6) from the percentage of promoters (those who rated 9-10). The Net Promoter Score ranges from +100 to -100 and is a metric that tells you about the loyalty of your customers or employees. Use the free online NPS Calculator to know the Net Promoter Score. 

How to Calculate NPS using NPS Survey Tool?

An ideal way to measure Net Promoter Score is to use an NPS Survey App. With the help of NPS Software, you can conduct NPS surveys across various platforms like on-premises using tablets, iPads, and kiosks, or send email and SMS surveys with NPS questions or embed NPS Surveys on your website. These NPS Survey Tools also enable you to view scores and feedback responses in real-time to identify your detractors and take action. You can use Net Promoter Score Survey Templates with Comments, Net Promoter Score Survey Templates with Customer Information, Net Promoter Score Survey Templates with Follow up Questions, and so on. 

Conclusion

The Net Promoter Score gives you not only a number but an opportunity to improve your business along with the customer experience.  Thus, Net Promoter Score provides you with the privilege to focus on the ‘Why’ behind the ‘What’ for both promoters and detractors to augment the health of your customer experience. You can also create your customized Net Promoter Score report for different team members and share them to inspire action.

PRISM NPS Score 2022