How is the Net Promoter Score (NPS) calculated?

The Net Promoter Score (NPS) is calculated specifically by assessing customer loyalty and satisfaction based on their likelihood to recommend a product or service to others. Customers are typically asked a simple question, such as, "On a scale of 0 to 10, how likely are you to recommend our product to a friend or colleague?"

Responses are categorized as follows:

• Promoters (scores of 9-10) are loyal enthusiasts who will continue to buy and refer others.

• Passives (scores of 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

• Detractors (scores of 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

To calculate the NPS, the percentage of detractors is subtracted from the percentage of promoters. This results in a score that can range from -100 (if every customer is a detractor) to 100 (if every customer is a promoter). This focus on recommendation likelihood is what makes NPS a valuable metric for understanding customer loyalty and overall satisfaction with a brand or product.