Now that we have clarified what NPS is and the three types of customers that drive this metric, we can move on to calculating the index.
So to calculate your NPS, you first determine how many of them are detractors vs. promoters , in terms of percentage of customers.
From there you subtract the percentage of detractors from the percentage of promoters .
How to calculate a company's NPS
Source: Provisibly.com
What is good/bad NPS?
NPS scores can vary by industry. But one rule of thumb is clear: a low NPS still indicates that your business could do better.
So where is the line between good performance and bad performance?
What is an NPS close to 0 ? It shows that most customers are honduras mobile database very unhappy with your company. Therefore, it is essential to do some research and find out where your pain points are ;
What is an NPS between 0 and 30 ? It can still be considered good – although it shows a lot of room for improvement. So you know that you still have some unhappy customers. But overall, your business is on the path to success;
What is an NPS between 30 and 70 : It indicates that the majority of your customers are satisfied. Yes, there are still opportunities for improvement. But you are on a highly promising path;
What is an NPS above 70 : this is a strong indication that your company has significant sales results and a solid place in the market, as well as loyal customers .
Remember: the higher your NPS, the more likely your customers are to refer you to others. Over time, these referrals can lead to increasingly higher conversion rates.
When is the right time to put NPS into practice?
The simplest answer to this question is: it depends on what you want to measure.
If you want to measure customer satisfaction with your purchasing process, sending out a survey form right after they receive their order can be an effective way to measure this. After all, they will have the experience fresh in their minds.
However, if you want to know how likely people are to recommend your product or company (the main purpose of the Net Promoter Score), it's best to take this research a little further .
This gives your customers enough time to receive and start using your product, so they can provide you with relevant and actionable feedback.