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?
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:
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”.
What do the numbers mean?
You will always have to score from 0 to 10, where 10 is most likely to recommend.
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.
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:
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…
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.
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:
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…