Net Promoter Score (NPS): Understand how likely your clients are to recommend your product, and how satisfied they are.

Overview

Net Promoter Score or NPS measures how willing your customers are to promote your product to their friends or colleagues.

The score is a single number, based on a survey which asks one question: “How likely is it that you would recommend (your brand or product) to a friend or colleague?”

Your customers respond on a scale of 10 - 1, with 10 being "extremely likely" and 1 being "not likely at all."

Scores are categorized into 3 groups: Promoters, Neutrals, and Detractors. Scores of 10 and 9 are brand "promoters," 8 and 7 are "neutrals," and any responses below 7 are brand "detractors."

Benefit
The NPS score is not super valuable by itself. Different industries have different NPS ranges. Which is more valuable is tracking changes in NPS, as well as the conversations the NPS survey can start. You should focus on the things that improve your NPS score (product quality, communication, etc.) instead of just trying to get a higher NPS score.

Step by Step Guide
Here's how to calculate your NPS.

Net Promoter Score is calculated like this: ((Number of Promoters — Number of Detractors) / (Number of Respondents) x 100) 

A Net Promoter Score can range from -100 (all detractors) to 100 (all promoters).

For example, let's say you received 100 responses to an NPS survey you sent out.

  • 70 responses were in the 9–10 range (Promoters)
  • 20 responses were in the 7–8 range (Neutral)
  • 10 responses were in the 0–6 range (Detractors)

When calculating the NPS, you ignore the neutral group.
First, we subtract the number of detractors from the number of promoters. 70-10=60 

Next, we divide that number by the total number of responses you received: 60/100=0.6 

Finally, we multiply this number by 100. 0.6 x 100 = 60 

So your Net Promoter Score will be 60.

Tracking NPS
The following apps help you track NPS:

Track in Grow
Here are some tips for tracking NPS in Grow.

  • Date range. All time for overall NPS, year date range for change in NPS over time.
  • Chart Type. We recommend using a bar chart or a pie chart showing the 3 groups for overall NPS. You could also use a line chart for NPS changes over time.
  • Measure. Percentage of promoters, passives, and detractors

Best Practices

When to send the survey
The old approach was to blast NPS surveys once a quarter. It is better to send surveys every day, triggered by events. Make sure to choose an event that allows your customer to have a full experience with your product. If you send an NPS survey day 1 of a 30 day trial, your results will be skewed. Your survey cadence will also depend on your industry. Uber asks for a rating every ride, while Saas subscription companies like to survey every quarter.

How frequently
A good practice is to survey customers constantly so you can see if any actions your company takes affects the score. One possibility is to send a survey to just 1% of your customers every day of the year (4 surveys per year per customer), instead of sending a mass-email campaign to all of your customers at once.

Who to survey
Surveying all of your customers regularly allows you to capture as much data as possible. It is bad practice to only send the survey to certain types of customers, because it will skew your results. You can use customer attributes, segments, and cohorts, to filter and narrow down to segments after you get responses.

Do you use another NPS provider that you would like as a data source? Please chat in on the site or email us at support@grow.com and tell us which one you use.

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