NPS is a way to see how happy your customers are with your business. You ask them one question on a scale of 0 to 10: "How likely are you to recommend our business to others?" Based on their answers, you can tell how many customers are really happy, just okay, or not happy. This helps you understand how well you're doing and what you can do to make your customers even happier.
To figure out the NPS, you ask your customers a simple question on a scale of 0 to 10: "How likely are you to recommend our business to others?"
Based on their answer, customers are divided into three groups:
People who say they would definitely recommend your business (they give a score of 9 or 10). These are your "promoters."
People who say they might recommend your business (they give a score of 7 or 8). These are your "passives."
People who say they wouldn't recommend your business (they give a score of 0 to 6). These are your "detractors."
To find the NPS, you subtract the percentage of detractors from the percentage of promoters. So, if 60% of your customers are promoters and 20% are detractors, your NPS would be 60 - 20 = 40.
Example:
Let's say you own a bakery and you want to know how happy your customers are. You ask each customer the NPS question: "On a scale of 0 to 10, how likely are you to recommend our bakery to others?"
If a customer says they would definitely recommend your bakery (they give a score of 9 or 10), they are considered a "promoter."
If a customer says they might recommend your bakery (they give a score of 7 or 8), they are considered a "passive."
If a customer says they wouldn't recommend your bakery (they give a score of 0 to 6), they are considered a "detractor."
Now, let's say you asked 100 customers and the results were as follows:
60 customers gave a score of 9 or 10 (promoters)
20 customers gave a score of 7 or 8 (passives)
20 customers gave a score of 0 to 6 (detractors)
To calculate the NPS, you subtract the percentage of detractors from the percentage of promoters. So, 60% of your customers are promoters and 20% are detractors, your NPS would be 60 - 20 = 40. This means you have a NPS score of 40, which is a good score and shows that most of your customers are happy with your bakery.