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What is the Net Promoter Score (NPS)?

The Net Promoter Score (NPS) refers to a metric that measures a company's customer satisfaction, loyalty, and enthusiasm. Moreover, you can calculate NPS by asking customers one question: "How likely will you recommend this product/company to a friend or colleague on a scale of 0 to 10?" 

Hence, to increase customer loyalty, businesses can use aggregate NPS scores to improve service, customer support, delivery, and other areas.

Why is Net Promoter Score (NPS) Crucial?

The Net Promoter Score (NPS) plays a vital role in the forecasting of your business growth. If your company has high NPS or at least above the industry average, you know you have a healthy relationship with customers who are likely to act as brand evangelists, fuel word of mouth, and help you to grow.

Why Should You Use a Net Promoter Score Calculator?

Almost every organization uses NPS surveys that help them to gather information on any aspect of their customers' experiences. Furthermore, a product team can send out the NPS question just after a customer uses the company's software product for the first time.  Also, there are chances that they may send NPS questions to the customer after 90 days or a year of using the product.

In a variety of industries, NPS scoring help to analyze customer satisfaction regarding the products/services. After visiting a grocery store, renting a car, or making a purchase in a shopping mall, customers may be asked the NPS question.

How to Calculate a Net Promoter Score (NPS)

When an organization sends an NPS question to their customers i.e., How likely will you recommend us to your family and friends? Then users need to respond with a score ranging from 0 to 10. Hence, based on their scores, you will sort users into one of three groups:

1. As Promoters (scores of 9 or 10)

These are your ardent and loyal customers.

2. As Passives (scores of 7 or 8)

These customers like your product, but they aren't enthusiastic enough to tell others about it.

3. Objectors (scores of 0 to 6)

Customers who are dissatisfied are unlikely to return. They might even persuade others not to buy your product.

Formula to Calculate Net Promoter Score:

Net Promoter Score (NPS) = Total percentage of promoters - Total percentage of objectors

Divide the percentage of detractors by the percentage of promoters to get your Net Promoter Score. (All passive responses will be set aside; they will not be taken into account.)

For Instance:

If 10% of respondents are objectors, 10% are passives, and 80% are promoters, your NPS score is calculated by subtracting 10% (your percentage of detractors) from 80% (your percentage of promoters). As a result, your net promoter score will be 70 which is a fantastic outcome (the people who are promoting you). 

Important Note:

Please keep in mind that, regardless of the specific numbers, you will calculate the net promoter score for each category in the same way. Responses 1 and 6 are both detractors, for example.

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