The long-story short of how it is calculated and why is it everywhere on the internet.

To start from the beginning: what is ?

NPS = Net Promoter Score.

Net refers to the amount remaining after certain adjustments have been made.

“Certain adjustments”… 🧐

You have replied at least once…

If you are an internet user you’ve been through (I’m 99% sure) a survey asking you “in a scale from 0 to 10, how likely are you to recommend our product to a friend or colleague” and sometimes requesting a reason:

Many examples of NPS Surveys.

Or if you work for a medium or big corporation you probably have heard or became aware that “NPS is super important for the business”.

What does NPS track?

One and only intent:

“How likely is a customer to recommend a product or service to a friend or colleague”.

That’s it.

What do the numbers mean?

You will always have to score from 0 to 10, where 10 is most likely to recommend.

What do numbers mean in the NPS survey.

If you ever gave a score from 0 to 6 to a brand, product or service, they will consider you a detractor. You will be a passive if you give a 7 or 8 and a promoter (yay!) if you give 9 or 10.

How is NPS Calculated?

NPS is calculated by subtracting the percentage of promoters from detractors from the total of responses 👀

NPS, therefore ranges from -100 to +100.

It looks complicated, but it is very easy and it will be explained below.

The calculations:

In the example below, there are 10 votes from 0 to 6:

In the case above, the NPS is -100. Got that? And you’ve just realised that you can remove the % symbols in the first step of the calculations that you will find the same -100. Or multiply by 100 and you remove the percentage 😎

Let’s move on to the other example:

Example of 10 votes from 7 to 8.

In the example above the user is considered a Passive. Even though there are 10 votes from 7 to 8, that score is not part of the calculations as you can see, meaning the NPS = 0.

Below you will see an extreme example and take conclusions for yourself…

Example of a Million votes from 7 to 8.

Since 7 and 8 are never part of the NPS calculations, even if there are a Million votes, it will not count and the NPS remains 0.

Below you will see what makes a NPS positive.

How to make calculations in NPS

100% of votes from 9 to 10 creates a NPS of +100 ✨ ⚡️

Above you saw very simple examples to give you some clarity around how NPS is calculated. In the next example you will find a real world scenario:

In the example above, the NPS is +20

Out of 1070 votes this business got a score of +20 (rounding it up).

NPS just ignored 340 votes (the passives), but this will be discussed below for you to think about…



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here