{"id":6662,"date":"2024-03-19T11:41:56","date_gmt":"2024-03-19T11:41:56","guid":{"rendered":"https:\/\/announcekit.app\/blog\/?p=6662"},"modified":"2024-03-19T13:10:48","modified_gmt":"2024-03-19T13:10:48","slug":"net-promoter-score-calculation","status":"publish","type":"post","link":"https:\/\/announcekit.app\/blog\/net-promoter-score-calculation\/","title":{"rendered":"How To Calculate Net Promoter Score To Track Customer Satisfaction"},"content":{"rendered":"\n<p>As a business, you\u2019re searching for an effective way to gather customer feedback. Sales are good, but it\u2019s hard to know if things could be better. <em>Are your customers truly satisfied?<\/em><\/p>\n\n\n\n<p>Net promoter scores (NPS) are crucial for measuring customer satisfaction and loyalty, yet some businesses aren\u2019t bothering to collect them. Could it be that their audience is too difficult to reach? Maybe they\u2019re unsure how to calculate net promoter scores accurately and efficiently to use the information.<\/p>\n\n\n\n<p><strong>Without fully understanding NPS and how to collect and calculate them, you could be doing your business a disservice.&nbsp;<\/strong><\/p>\n\n\n\n<p>Learn two simple ways to calculate net promoter scores, how to interpret the calculations, ways to analyze the data, and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Table of Contents<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#net-promoter-score-calculation-1\">What Is Net Promoter Score (NPS)?<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-2\">NPS Breakdowns<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-3\">2 Ways To Calculate Net Promoter Score<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-4\">Net Promoter Score Calculation Example<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-5\">2 Methods for Interpreting Net Promoter Score Calculations<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-6\">Tips for Analyzing Net Promoter Score Calculations<\/a><\/li>\n\n\n\n<li><a href=\"#net-promoter-score-calculation-7\">Calculate Net Promoter Score the Easy Way with AnnounceKit<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-1\"><strong>What Is Net Promoter Score (NPS)?<\/strong><\/h2>\n\n\n\n<p>Net Promoter Scores (NPS) can greatly affect companies, both negatively and positively. They are used to help gauge how customers view a company through customer loyalty, satisfaction, and enthusiasm.&nbsp;<\/p>\n\n\n\n<p>The big question to ask:<em> \u201cOn a scale of 0 to 10, how likely are you to recommend this product\/company?\u201d&nbsp;<\/em><\/p>\n\n\n\n<p>The timing of sending an NPS survey can impact the response, so knowing when is the <a href=\"https:\/\/announcekit.app\/blog\/when-to-send-nps-survey\/\"><em>best <\/em>time<\/a> to take action matters. With these responses, companies of all sizes can improve upon customer service, support, delivery, and more.&nbsp;<\/p>\n\n\n\n<p>How do you increase your NPS? By earning more enthusiastic customers that can be easily tracked over time.<\/p>\n\n\n\n<p><strong>AnnounceKit helps businesses take advantage of a wider customer base when it comes to sending NPS surveys and receiving scores. <\/strong>With an easy-to-implement widget, companies can garner the most valuable responses from their companies and work to <a href=\"https:\/\/announcekit.app\/use-cases\/nps-software\">increase their NPS<\/a> over time.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#f8fafc;line-height:1.6\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-group alignfull\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"946\" height=\"180\" src=\"https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo.png\" alt=\"\" class=\"wp-image-5433\" style=\"width:151px;height:28px\" srcset=\"https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo.png 946w, https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo-300x57.png 300w, https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo-768x146.png 768w\" sizes=\"auto, (max-width: 946px) 100vw, 946px\" \/><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-4b2eccd6 wp-block-group-is-layout-flex\">\n<h3 class=\"wp-block-heading has-text-align-center has-text-color\" style=\"color:#202642;font-style:normal;font-weight:500\">Quick Setup, Easy to Use, and Many Integrations<\/h3>\n\n\n\n<p class=\"has-text-align-center has-text-color\" style=\"color:#667d9f\">Manage your product announcements from a single place and easily distribute them <br>across multiple channels.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons alignfull is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size\" style=\"font-size:16px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/announcekit.app\/dashboard\/register\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=net-promoter-score-calculation\" style=\"background-color:#3778ff\">TRY IT FOR FREE NOW<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-text-align-center has-text-color\" style=\"color:#3778ff;font-size:15px\"><a href=\"https:\/\/announcekit.app\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=net-promoter-score-calculation\" data-type=\"URL\" data-id=\"https:\/\/announcekit.app\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=saas-onboarding-best-practices\">Go to Website<\/a><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-2\"><strong>NPS Breakdowns<\/strong><\/h3>\n\n\n\n<p>A Net Promoter Score is given on a scale of 0-10, so understanding what each numeric score means based on where it falls can be helpful. They are classified into one of three categories:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Detractors<\/li>\n\n\n\n<li>Passives<\/li>\n\n\n\n<li>Promoters<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>0-6: Detractors<\/strong><\/h4>\n\n\n\n<p>As you might imagine, these lower-end scores represent a group of <strong>unhappy or dissatisfied customers.<\/strong> They are highly unlikely to both purchase from you again and recommend your product or company to others.&nbsp;<\/p>\n\n\n\n<p>For these reasons, this group is important to pay close attention to by addressing them with insights that help you better understand their experience and why it was unfavorable. You can then use this information to improve your business.<\/p>\n\n\n\n<p>Once you\u2019ve made the necessary changes to address those noted pain points, you can calculate another NPS to determine if the changes made were successful.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>&nbsp;7-8: Passives<\/strong><\/h4>\n\n\n\n<p>This group can be tough to address because they didn\u2019t necessarily have a bad experience, but they also weren\u2019t very impressed, either. <strong>They might be quick to leave you for a competitor if there\u2019s a shiny reason to make the change.<\/strong><\/p>\n\n\n\n<p>Companies want to pay close attention to this category because they can quickly become detractors by default. However, with the right changes, they can also easily become promoters.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>9-10: Promoters<\/strong><\/h4>\n\n\n\n<p>If your NPS falls in this range, you have a high percentage of promoters who are referring your business, which is great news.&nbsp;<\/p>\n\n\n\n<p><em>How do you get more promoters?<\/em> By making the customer experience as pleasant as possible.&nbsp;<\/p>\n\n\n\n<p>Promoters are also the most cost-efficient form of advertising. They happily (at no cost to you) talk about your product or company because they were highly satisfied with their experience. <em>But that doesn\u2019t mean there\u2019s no room for improvement.&nbsp;<\/em><\/p>\n\n\n\n<p>With this category, take advantage of discovering what more you can do to improve their experience, helping keep them as promoters and not letting them fall to passives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-3\"><strong>2 Ways To Calculate Net Promoter Score<\/strong><\/h2>\n\n\n\n<p>As we mentioned, surveying customers is the easiest way to see how likely they are to recommend your company or product, depending on where they fall on the NPS scale breakdown.<\/p>\n\n\n\n<p>To find your overall NPS, you can use one of two options.<\/p>\n\n\n\n<center><iframe loading=\"lazy\" src=\"https:\/\/giphy.com\/embed\/5zoxhCaYbdVHoJkmpf\" width=\"480\" height=\"480\" frameBorder=\"0\" class=\"giphy-embed\" allowFullScreen><\/iframe><\/center>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#1: Net Promoter Score Formula<\/strong><\/h3>\n\n\n\n<p>The formula for NPS is as follows:<\/p>\n\n\n\n<p>Net Promoter Score = (Number of Promoter Scores\/Total Number of Respondents) &#8211; (Number of Detractor Scores\/Total Number of Respondents)<\/p>\n\n\n\n<p>Simply plug your numbers into this equation to calculate your NPS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#2: NPS Calculator<\/strong><\/h3>\n\n\n\n<p>Using this calculator, plug in the appropriate numbers to calculate NPS:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-4\"><strong>&nbsp;Net Promoter Score Calculation Example<\/strong><\/h2>\n\n\n\n<p><strong>Refer to the following example when working through how to calculate NPS:<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-left\">Your company surveys 100 customers and ends up with a result of 60 promoters, 30 passives, and 10 detractors. Based on the calculation, your NPS would be 50.<\/p>\n\n\n\n<p class=\"has-text-align-center\">(Number of Promoter Scores\/Total Number of Respondents) &#8211; (Number of Detractor Scores\/Total Number of Respondents) = NPS<\/p>\n\n\n\n<p class=\"has-text-align-center\">(60\/100) &#8211; (10\/100) = NPS<\/p>\n\n\n\n<p class=\"has-text-align-center\">60% &#8211; 10% = 50%<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-5\"><strong>2 Methods for Interpreting Net Promoter Score Calculations<\/strong><\/h2>\n\n\n\n<p>You\u2019ve collected NPS surveys and calculated your NPS score, now it\u2019s time to interpret the data so you can best understand it and utilize it to improve your customer satisfaction, experience, and service.<\/p>\n\n\n\n<p><em>How do you know if you have a good or bad NPS score?&nbsp;<\/em><\/p>\n\n\n\n<p>First, set your NPS score as a benchmark for your company, then use the <a href=\"https:\/\/www.indeed.com\/career-advice\/career-development\/good-nps\" target=\"_blank\" rel=\"noopener\">absolute and relative methods<\/a> to learn how to contextualize your score through industry benchmarks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#1: Absolute Method<\/strong><\/h3>\n\n\n\n<p>This method puts your score into one category \u2014 you\u2019re looking at it from one perspective.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>If your score is below zero<\/strong>, that implies customers are highly likely to warn others away from your company or product. It\u2019s seen as a \u201cbad\u201d score because a majority of customers have had bad experiences and are highly likely to move on to a competitor.<\/li>\n\n\n\n<li><strong>If your score is between 0 and 30<\/strong>, it is seen as \u201cacceptable.\u201d This low positive score indicates there are more promoters than passives or detractors, but there is room for improvement. Overall, your company is doing something right.&nbsp;<\/li>\n\n\n\n<li><strong>A score between 30 and 50<\/strong> is viewed as \u201cpretty solid.\u201d Your company has more promoters than detractors and its product, for the most part, delivers on value and a majority of your consumers are happy and would recommend you to others.<\/li>\n\n\n\n<li><strong>A score higher than 50<\/strong> is \u201cawesome.\u201d If you score here, you sit at the top of your industry and your customer experience is very positive.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#2: Relative Method<\/strong><\/h3>\n\n\n\n<p>This method helps companies look at different NPS benchmarks to understand how much of a brand differentiator their customer experience is. Many companies will make their NPS scores public for this reason.<\/p>\n\n\n\n<p>Benchmarks can depend on <a href=\"https:\/\/www.asknicely.com\/blog\/breaking-down-net-promoter-score-benchmarks-by-industry\" target=\"_blank\" rel=\"noopener\">many factors<\/a>, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Competition within the industry<\/li>\n\n\n\n<li>Barriers to switching brands<\/li>\n\n\n\n<li>Customer tolerance and sensitivity&nbsp;<\/li>\n\n\n\n<li>And more<\/li>\n<\/ul>\n\n\n\n<p><strong>Using the relative method, some common industry benchmarks are as follows:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.cdkglobal.com\/insights\/transparency-and-trust-how-dealers-can-improve-nps-scores\" target=\"_blank\" rel=\"noopener\">Automotive industry<\/a> \u2013 33 to 63<\/li>\n\n\n\n<li>Software industry \u2013 28 to 55<\/li>\n\n\n\n<li>Computer industry \u2013 8 to 60<\/li>\n\n\n\n<li>Health insurance industry \u2013 19 to 68<\/li>\n\n\n\n<li>Network and internet provider industry \u2013 2 to 33<\/li>\n\n\n\n<li>Supermarket industry \u2013 20 to 59<\/li>\n\n\n\n<li>Banking industry \u2013 17 to 62<\/li>\n\n\n\n<li>Airline industry \u2013 18 to 55<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-6\"><strong>Tips for Analyzing Net Promoter Score Calculations<\/strong><\/h2>\n\n\n\n<p>Calculating your score is just the first step \u2014 you have to look deep into the qualitative feedback to understand how to improve your score.<\/p>\n\n\n\n<p>It\u2019s also important to remember that a \u201cgood\u201d NPS score for one industry or business will not be considered \u201cgood\u201d for another. <a href=\"https:\/\/announcekit.app\/blog\/what-is-a-good-nps-score-for-saas\/\"><em>a positive NPS score<\/em><\/a><em>:<\/em><\/p>\n\n\n\n<p>For a SaaS (Software as a Service) company, a positive NPS score would be between +1 and +100 and a negative NPS score would be from -100 to -1. A neutral score would fall in between the two, 0 to +1.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Identify Patterns<\/strong><\/h3>\n\n\n\n<p>By using a tried and trusted NPS tool, companies can collect NPS feedback, calculate NPS, and monitor trends to identify patterns.&nbsp;<\/p>\n\n\n\n<p>When you monitor trends from survey results, you can uncover the patterns around what customers view as your company\u2019s strengths and weaknesses and work to improve them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Follow Up<\/strong><\/h3>\n\n\n\n<p>When customers take the time to fill out or respond to a survey, a simple acknowledgment can go a long way for them. Let them know their response was appreciated and valued with a quick follow-up \u2014 a simple \u201cThank you for your response!\u201d can work.<\/p>\n\n\n\n<p>While you\u2019re doing this, you can encourage them to spread the word about your product, especially if they are a promoter, and maybe even a passive. In your follow-up to a detractor, be sure to let them know their feedback has been heard and actions will be taken.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"net-promoter-score-calculation-7\"><strong>Calculate Net Promoter Score the Easy Way With AnnounceKit&nbsp;<\/strong><\/h2>\n\n\n\n<p>Measuring customer satisfaction and loyalty is crucial to creating a successful business, and gathering feedback is the best way to do this. <em>How can you effectively and efficiently reach a large customer base and encourage them to offer a useful response?&nbsp;<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/changelog.announcekit.app\/nps-by-announcekit-beta-is-live-4DHPUc\">NPS by AnnounceKit<\/a> is a simple, single-survey question that easily gathers a score for a customer\u2019s experience. When you calculate the net promoter score overall, you can find where your business sits compared to others in the industry.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/announcekit.app\/\"><strong>AnnounceKit<\/strong><\/a><strong> makes collecting and calculating net promoter scores simple to do. <\/strong>By using our widget, you can collect valuable feedback from users directly within your AnnounceKit account. Calculate the NPS, then use the analytics dashboard to help make sense of the data and insight.<\/p>\n\n\n\n<p>Simplify the process of collecting and calculating net promoter scores with AnnounceKit.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#f8fafc;line-height:1.6\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-group alignfull\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"946\" height=\"180\" src=\"https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo.png\" alt=\"\" class=\"wp-image-5433\" style=\"width:151px;height:28px\" srcset=\"https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo.png 946w, https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo-300x57.png 300w, https:\/\/announcekit.app\/blog\/wp-content\/uploads\/2023\/01\/logo-768x146.png 768w\" sizes=\"auto, (max-width: 946px) 100vw, 946px\" \/><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-4b2eccd6 wp-block-group-is-layout-flex\">\n<h3 class=\"wp-block-heading has-text-align-center has-text-color\" style=\"color:#202642;font-style:normal;font-weight:500\">Quick Setup, Easy to Use, and Many Integrations<\/h3>\n\n\n\n<p class=\"has-text-align-center has-text-color\" style=\"color:#667d9f\">Manage your product announcements from a single place and easily distribute them <br>across multiple channels.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons alignfull is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size\" style=\"font-size:16px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/announcekit.app\/dashboard\/register\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=net-promoter-score-calculation\" style=\"background-color:#3778ff\">TRY IT FOR FREE NOW<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-text-align-center has-text-color\" style=\"color:#3778ff;font-size:15px\"><a href=\"https:\/\/announcekit.app\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=net-promoter-score-calculation\" data-type=\"URL\" data-id=\"https:\/\/announcekit.app\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=saas-onboarding-best-practices\">Go to Website<\/a><\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a business, you\u2019re searching for an effective way to gather customer feedback. Sales are good, but it\u2019s hard to know if things could be better. Are your customers truly satisfied? Net promoter scores (NPS) are crucial for measuring customer satisfaction and loyalty, yet some businesses aren\u2019t bothering to collect them. Could it be that&#8230;<\/p>\n","protected":false},"author":12,"featured_media":6675,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/posts\/6662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/comments?post=6662"}],"version-history":[{"count":5,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/posts\/6662\/revisions"}],"predecessor-version":[{"id":6678,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/posts\/6662\/revisions\/6678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/media\/6675"}],"wp:attachment":[{"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/media?parent=6662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/categories?post=6662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/announcekit.app\/blog\/wp-json\/wp\/v2\/tags?post=6662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}