Want to know what your customers really think about your brand or products? Would they recommend you to their friends and/or colleagues? Are they loyal? Calculating your Net Promoter® Score (NPS) will get you closer to answering these questions.

NPS  is an effective management tool used to gauge customer loyalty by asking the ultimate question:

How likely is it that you would recommend this [company/product/service] to a friend or colleague?

According to research done by Bain & Company, achieving a high NPS makes you twice as likely to have long-term, profitable growth. In addition to this, calculating your NPS is a fast and easy way to figure out how your customers think you are doing, allowing you to react to negative feedback and keeping you on track.

The most common scale used when measuring NPS, runs from 0 to 10. Based on this, those who respond 0 to 6 are labeled as Detractors, 7 or 8 as Passively satisfied, and 9 or 10 as Promoters. However, we recommend using a 7 point scale when calculating your NPS. Net promoter scores are calculated by subtracting the Detractors from the Promoters and dividing the sum by the number of respondents. In most cases, the NPS is then visually presented in a gauge chart as illustrated below.

 

Sometimes it can be beneficial for you to see the distribution of the Detractors, Passively satisfied and Promoters comprising your NPS. This can visually be done by you choosing to show your data in a stacked bar chart as seen in the example below.

 

Learn how to create your own NPS question using Enalyzer.