Net Promoter Score (NPS) Formula and Calculator
Net Promoter Score Definition, Formula, and Calculator
Lesson Objective: In this marketing math tutorial, you will learn:
- Net Promoter Score definition
- purpose for calculating Net Promoter Score
- Net Promoter Score (NPS) math formula
Net Promoter Score (NPS) – Definition & Purpose
Net Promoter Score is a simple marketing matrix used to measure the degree to which current customers will recommend a product, service, or company to their friends, family, or colleagues.
The purpose of NPS is to measure how well a brand or company is succeeding in creating satisfied customers. Based on an 11-point system, respondents answer one fundamental and important question, “How likely is it the you would recommend our company, product, or service to a friend?”
Based on their answer, customers are then divided into one of three sections:
Promoters: Those who gave a rating 9 or 10. This group of customers are willing to recommend the company, product, or services to others.
Passives: Customers who give a 7 or 8 rating are considered Passives; they are satisfied, yet are unenthusiastic customers.
Detractors: These customers provide a score of 0 to 6 and are unwilling to recommend the company or brand to others.