If you want to quantify your growth, there are many KPIs to look at, like sales, profits, etc. However, a KPI that is often ignored is customer loyalty. This growth metric is special for two reasons. Firstly, it's a metric that can quantify the emotional connections your customers have with you, like how much they love your brand. Secondly, you can grow your sales, increase profits, and many more by just focusing on increasing customer loyalty.
But the question here is, how can you know about the loyalty of your customers to your brand? Here comes the role of Net Promoter Score, a metric that primarily focuses on quantifying satisfaction and loyalty but has to offer a lot more. If you are reading this blog, you most probably know what NPS is, but let us learn how to calculate it today!
How to Calculate Net Promoter Score?
Net promoter score calculation is not a very hard task as the formula is quite simple. But what you really need to know are the components of NPS. So, let us have a quick look.
There are three categories of responses:
Promoter: Rates you 9-10
Passive: Rates you 7-8
Detractor: Rates you 0-6
To start the calculation, first segregate responses in these three categories. Then, use this net promoter score formula to find the score:
[(Number of Promoters - Number of Detractors) ÷ Total Number of Responses] × 100
Moreover, you can also find out the score with this Net promoter score formula:
NPS = Percentage of Promoters - percentage of Detractors
Let's also look at an example of net promoter score calculation. Suppose you reached out to some of your customers with an NPS survey. Now, you have 250 responses, which, upon segregation, you get these numbers.
Total Responses = 250
Promoters = 100
Detractors = 50
Passives = 100
So, let's calculate the percentage of promoters and detractors.
% of Promoters = (100/250)*100 = 40%
% of Detractors = (50/250)*100 = 20%
Now, with these formulas, you will find out the score, but the responses individually also have a great value.
For instance, if a person is a promoter, detractor or passive, your follow-up with the person differs. In the case of a promoter, you may just have to maintain their trust in you, but in the case of a detractor, you will have to build the trust. Moreover, passives, who are often left behind in the net promoter score formula, should be turned into promoters with your efforts.
Three Best Ways to Calculate NPS
After receiving data through surveys, you need to calculate your final score. So, there are three main methods that you can use to calculate Net Promoter Score.
Net Promoter Score Calculation on Excel or Spreadsheet
The first option is to use Excel or Google spreadsheet to calculate the score. You can find online templates for calculation, which are based on Excel or spreadsheets. In these templates, you just have to put in the data, and you get the percentage of promoters, detractors and passives along with the score.
Net Promoter Score Calculator Website
While the above method is good for those who have to deal with smaller data sets, if you have larger data to deal with, then you must look for an alternative. You can use online NPS calculator websites where you have to put in the numbers, and it will give you the results along with the percentages.
A Comprehensive Survey Tool
The third option is to opt for a full-fledged solution that can cover all your NPS needs. Yes, you can get a net promoter score software that can do a lot more than just finding your score.
SurveyCXM is one of the best NPS software that you can get from the QDegrees house. It not only calculates the score live but also helps you create the surveys, launch the surveys on different channels and provide insights. Additionally, we have other metrics, such as CSAT and CES score calculators. So, it is a one-stop solution for all your customer experience survey needs.