All you need to know about Net Promoter Score (NPS), how it works, and why it's so beneficial for your business.

You may have heard the phrase Net Promoter Score or seen the initials NPS thrown around in business articles, blogs, or company reports. You may have even been chatting with colleagues and been asked your thoughts on a competitor's NPS. You rack your brain, what is NPS? Is it good? Is it bad? Or you may have been asked how you boost your NPS? You normally take vitamins to boost your B12, but this is something different. Worse still, can I catch it!?

Don't worry, its much simpler than you think - made even simpler with - and having an NPS is so, so, good!

What Is Net Promoter Score?

Net Promoter Score, or NPS, is a tool established by Fred Reichheld in 2003, and is used to gauge the loyalty of your customers to your business or brand and create a score. A score is generated through the likelihood of your customers continued service, or by them positively spreading your brand through word of mouth (WOM).

How Is Your Score Calculated?

Your customers are divided into three categories: Promoters, Passives, and Detractors. These labels are quite instinctive, with Promoters increasing your NPS, Passives sitting in the middle neither here nor there regarding your brand, and Detractors lowering your score. Scores are calculated by simply subtracting the percentage of Detractors from the percentage of Promoters. Passives do come into the final score as they are included in the total number of respondents.

Easy peasy. Lets use an example:

(Promoters - Detractors) / (Total Respondents) x 100 = NPS

(40 - 15) / (100) x 100 = 25

What Do The Numbers Mean?

Any score from 0 upwards is an indicator your business is doing well. But don't be disheartened if you're score is in the negative. As discussed in one of my previous blogs, similarly to negative reviews, a negative NPS score suggests room for improvement, creating insight for the need to incentivise Detractors and Passives to get them on board with your great product or brand. A good example of such improvements is highlighted in Birkenshaw's 2017 article, which found banking giant ING's score rose from -21% in 2015, to a whopping -7% in 2017!

So What's The Big Whoop!?

Knowing your NPS allows for a whole host of benefits for your company, so let's break them down.

One Question:

An NPS Survey is distributed by the provider, or if you have an account with NPS is already built-in to the service. The survey just asks one simple question along the lines of "How likely are you.." and is rated on a scale from 0-10. To gain richer insight, the only other thing that respondents are asked is why that was their response. There are no reams of questions to answer.

No Harassment:

With only one question to reply to, you are not taking up your customers precious time, nor do your customers feel harassed with multiple probing questions.

Open-Ended Questions:

With these open-ended "why" questions, providers can gain richer insight which they are then able to follow up on. This is most important for customers in the Detractors category to get their voice heard and allow your business to improve, being the best you can be.

Distinct Customer Groups:

Being able to define your customer base, you are able to play upon your strengths, incentivise the middle ground, and improve on your weaknesses.

Visual Benchmarking:

See your score compared to a comptitiors allowing you to know where you should be within a certain sector.

In-House Scoring:

NPS can even be used to determine which sectors or departments within your business are thriving, and how you can optimise other areas to be on par.

Business Growth:

NPS helps drive business growth as your business becomes even more focused and determined to improve your score to give your customers the best experience available.

In Favour of NPS

As you can probably tell, I could praise the overwhelming benefits of NPS until the cows come home. That said, you may be wondering if integrating NPS for your business comes at a cost. Not at all. Here at we take all that fuss and hassle off your hands with the NPS survey already built-in, leaving you to focus on the survey outcomes, which is what really matters.

Blog Summary

All in all, your Net Promoter Score (NPS) isn't some disease, nor is it a topic to be shied away from at the workplace cooler. Your NPS displays loyalty between provider and customer allowing you to identify trends, make improvements, and strengthen your brand. If you don't already, strengthen it further by collecting and displaying reviews, something we are passionate about here at To find out more visit the homepage, or check out a round-up of what we do in this blog.

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