# Net Promoter Score Calculator

## Answers the Question

How strongly do our customers support us?

## What Is the Net Promoter Score?

The net promoter score is generated by scoring customers' opinions of a given product or company on a ten-point scale.

• Promoters are those who are so enamored with an offering that they actively refer it to their friends and associates. These parties provide a score of 9 or 10 on a ten-point scale.
• Passives are those who don't feel strongly about an offering. They provide a score of 7 or 8 on a ten point scale. Although this group is made up of parties with positive opinions of an offering, the opinions are not positive enough to encourage advocacy for the offering.
• Detractors are those who either do not like or barely like a given offering. This group provides scores between 0-6 on a ten-point scale.

## Why Is it Important?

• Businesses must be able to quantify their customers opinions of their products in order to determine their pricing power and opportunities for expansion. High net performance scores will not only indicate the opinions of existing customers but also the odds that existing customers will help convince non-customers become actual customers. The higher the net promoter score, the brighter the future for a given firm.

## Formula(s) to Calculate Net Promoter Score

• NET PROMOTER SCORE = 100 * ( NUMBER OF PROMOTERS / (NUMBER OF PROMOTERS + NUMBER OF PASSIVES + NUMBER OF DETRACTORS) - NUMBER OF DETRACTORS / (NUMBER OF PROMOTERS + NUMBER OF PASSIVES + NUMBER OF DETRACTORS) )

## Common Mistakes

• Optimizing purely for a high NPS score. Many businesses would prove far less profitable if they shed all passive customers, yet their net promoter score would increase.
• Many firms will focus primarily on increasing the percentage of promoters, when decreasing the number of detractors would be far less expensive and just as effective in improving the net promoter score.
• Some companies may attempt to keep their thumbs on the scales when surveying their customers. The scoring methodology and data collection strategy should not be designed to lead customers to make a particular selection.
• Not using tight customer segments. Different groups may respond differently to product changes. Thus, efforts to improve the net promoter score in one region may prove unnecessary (or even detrimental) in another.
• Utilizing survey data that does not correctly reflect the reality on the ground due to low response rates.

• NPS