How does the NPS calculation work?

You need to follow a systematic approach for NPS calculation. When you are dealing with hundreds of surveys, you should follow a step-by-step method to create and conduct a survey, categorize responses, calculate the score, compare it, and take action. It all begins by asking your customers a simple and straightforward: “How likely is that you would recommend us to a friend?" and provide your customers with an option to choose an appropriate number between 0 and 10. Categorizing responses is the next step. Net Promoter Score calculation involves identifying Promoters, Passives, and Detractors. After categorization, it's time to calculate yourNPS.

How does the NPS calculation work?

The NPS could range between -100 and 100. You need to compare the NPS with industry benchmark to make sense of how good or bad it is. Generally, higher NPS means your customers are satisfied with your company and they’re loyal customers. A good Net Promoter Score for one industry might be poor for another industry. Consider department stores where a decent NPS is 52. On the other hand, a good NPS for the internet service industry is ranging between 5 to 72.

The NPS varies from industry to industry so if you end up selecting an inaccurate industry, your NPS will be misleading. Generally, NPS above 70 is considered good irrespective of your industry. If your NPS is above 30, it is still good irrespective of your industry as it means your business has more happy customers than unhappy ones. Even if your NPS is between 0 and 30, it is still considered acceptable and isn’t really bad. However, if it is below 0, that’s the time when you should worry.