How to Calculate NPS
NPS is a powerful research metric that gauges customer satisfaction. A generative AI chatbot like Gleen AI can not only help you improve customer satisfaction, but also measure NPS.
Are you taking full advantage of NPS as a metric for delivering revenue-driving insights?
That may have sounded like a big claim, but it couldn’t be more true– and there’s data to back it up.
According to a report by CustomerGauge, roughly 62% of businesses aren’t calculating the ROI of their CX efforts.
It’s no surprise then that roughly 70% of respondents don’t know how CX or CS is affecting their bottom line.
And what is one of the best metrics for uncovering those insights? NPS, or Net Promoter Score.
Are you wondering, how do we calculate NPS? Read on to find out how do you calculate NPS score, measure it, and tips for utilizing those insights to improve your customer service.
How to Calculate NPS Score
Net Promoter Score, or NPS, is a market research metric designed to gauge one aspect of customer satisfaction: whether your customers would recommend your company, product, and/or service to a friend or colleague.
Calculating NPS is pretty straightforward. But before you can do that, you need to gather and sort through the data.
Here’s how NPS is calculated:
1. Survey your customers
Typically, an NPS survey uses some version of the below “0-10” scale questionnaire:
“On a scale from 0-10, how likely would you be to recommend our [company/product/service] to a friend or colleague?
Feel free to ask additional and similar follow-up questions as well using the same scale format.
If your customer answers the first question, they’re highly likely to answer the proceeding ones as well so you might as well make the most of the opportunity.
2. Tally your responses (Promoters, Passives, and Detractors)
Now that you have your survey data, it’s time to tally each of your responses into one of three corresponding buckets.
- Promoters: Answered 9-10. Highly likely to recommend you.
- Passives: Answered 7-8. Relatively indifferent.
- Detractors: Answered 0-6. Likely wouldn’t recommend or would give a negative recommendation.
This is the magic of the NPS survey structure so it’s important to make sure and get this part right.
It might sound harsh, but anyone who answers between 0-6 is considered a detractor who either won’t recommend your brand or, if it comes up in conversation, would recommend someone to not use your company/product/service.
Anywhere in that 0-6 range is considered a negative, so you preferably want as many responses above 6 as possible (ideally, 9-10).
As hard as that may be to see when you review the data, it’s vital to know how your customers are feeling about you and how you can improve.
3. Calculate the percentage of Promoters and Detractors
Now, it’s time to start calculating.
To calculate your NPS score using the data you’ve gathered, you need two things:
- The percentage of your responses who were “Promoters”: Those who selected 9 or 10 on their willingness to recommend you.
- As well as the percentage of “Detractors”: Those who selected any number between 0-6 as discussed above.
To figure this out, take the number of responses the classify as promoters and divide it by the total number of responses:
Percentage of Promoters = [Total Number of Responses] - [Total Number of Promoters] / 100
Then, do the same for your detractors by plugging the total number of detractors in where you had the total number of promoters above.
4. Calculate your NPS score
Once you have both your percentage of promoters and detractors, it’s time to plug them into this equation and calculate your NPS:
NPS = [Percentage of Promoters] - [Percentage of Detractors]
This will give you your general NPS.
Now, you should have both your NPS as well as a collection of vital insights related to how your customers feel about your brand, product, and/or service.
With that in hand, let’s talk about how to utilize that data to get the most out of it.
How to utilize your NPS data
Calculating your NPS is just the beginning.
With that data, you can truly begin making measurable changes to improve how your customers feel about your brand.
Here are some strategies for utilizing the data you’ve gathered and making it count:
1. Analyze your detractor responses
If you asked additional follow-up questions during your survey, analyze them to find out why your detractors feel the way to quickly find ways to elevate your NPS.
Look for trends in your survey responses. Is there a central issue that a large number of your detractors cite as the reason they feel the way that they do?
Also, the best way to raise your NPS is to go straight to the heart of the issue. So, consider reaching out to your detractors for more direct feedback.
2. Implement the feedback and insights you gathered into your employee training
If the first point is reactive (receive negative feedback -> find out why), this one is proactive.
Once you have a better idea of what kind of improvements need to be made to shift more of your detractors over to promoters, use those insights to train your team.
The more you can teach your agents about your customer the better.
- Frequent struggles and issues cited by detractors
- Common language to help identify those issues
- What makes a customer a promoter (what do they love that you do?)
Each of these– as well as other insights you uncover– can help your CS team form a better idea of who your average customer is, what they like and don’t like, and ultimately how to leave them feeling great after an interaction with your team.
3. Continue to collect NPS data to identify trends over time
Once you’re done analyzing the data of your first NPS survey, it’s time to do it again.
Running an NPS survey shouldn’t be a one-off thing or even an irregular data collection strategy.
You should be constantly running NPS surveys on all customer interactions to keep a pulse on how your customers are feeling about your brand, product or service, and customer service itself.
This will allow you to identify trends over time and see which of your initiatives are working to improve customer sentiment.
You’ll also be able to catch dips in your NPS as well. If you notice a trend towards a larger percentage of detractors or even simply passives, you’ll be able to catch it early.
Learn More About How to Improve Your NPS Score
Improving your NPS is an ongoing process, but it’s well worth the effort.
To learn more about how to improve your NPS, check out our guide: How to Improve Your NPS Score: 7 High-Value Tips
Serve Your Customers Automatically and Gather Feedback with Gleen AI
When it comes to NPS, where and how often you gather feedback is critical.
The more consistently you’re gathering feedback, the more you’ll know about your customers and the more “in tune” you’ll be when changes happen.
One of the best ways to gather regular feedback automatically is by way of a generative AI chatbot like Gleen AI.
With Gleen AI, you can not only serve your customers via all your major CS channels with a convenient support tool, but you can also take advantage of the latest in generative AI.
Gleen AI features:
- 24/7/365 real-time support
- Uploading your proprietary knowledge base, and automatically recrawling knowledge
- The ability to understand complex customer questions
- In nearly 100 foreign languages
- Super accurate answers and no hallucination.
In addition, a Gleen Action Bot can be configured to measure NPS by ask a random set of customers:
"“On a scale from 0-10, how likely would you be to recommend our [company/product/service] to a friend or colleague?"
The more you know about how your customers feel after each brand interaction, the greater improvements you’ll be able to make to your NPS score.