How to Measure NPS for Your Organization

What is NPS?

Good and most of the well-known brands from around the world follow Net Promoter Score (NPS) method to ensure a good quality of customer experiences. NPS is the abbreviated form of Net Promoter Score.

Types of NPS

There are two types of NPS, one is tNPS and another is rNPS. tNPS is the abbreviated form of Transactional Net Promoter Score. Generally tNPS is performed immediate after any customer experience related transaction. On the other hand rNPS is the abbreviated form of Relationship Net Promoter Score. Generally, relationship survey is meant to gather feedback from long-term customers on a regular basis (i.e. monthly, quarterly etc.) considering same criteria on every competitors.

NPS Question

The score (tNPS or rNPS) comes from the NPS question, which is: “On a scale of 0 to 10, how likely is it that you would recommend our organization to a friend or colleague?”

Category of NPS Score

Based on the number a customer chooses, they’re classified into one of the three categories: 1). “Detractors,” 2). “Passives,” and 3). “Promoters.”

Step by Step Process of NPS Score Calculation

The NPS (tNPS as well as rPNS) is calculated as a percentage form, based on the classification that respondents fall into from Detractors to Promoters. So, to calculate the percentage, you need to follow the below steps:

1. Capture all of the survey responses and store into a file
2. Break down the responses by Detractors (0-6), Passives (7-8) and Promoters (9-10)
3. Sum up the total responses by each group
4. To get the percentage of each group, divide each group total by the total number of survey responses
5. Finally, to calculate NPS, subtract the percentage total Detractors from the percentage total of Promoters—it is your NPS score

NPS Score Calculation

NPS calculation is very much simple, just subtracting the percentage of detractors from the percentage of promoters. From the above example, if 50% of respondents are promoters, 20% are detractors, and 30% are passives. So, your NPS would be 50%-20%=30%.

Conclusion

In this tutorial, I tried to brief how to calculate tNPS or rNPS for your Organization. Hope you have enjoyed the tutorial. If you want to get updated, like the facebook page https://www.facebook.com/LearningBigDataAnalytics and stay connected.

Disclaimer: Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.