The Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of customers recommending a product or service to others.
It is calculated by asking customers to rate their likelihood of recommending the product on a scale of 0 to 10 and then grouping the responses into three categories: detractors (0 to 6), passives (7 to 8), and promoters (9 to 10). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
NPS provides valuable insight into the customer experience and helps companies understand how customers perceive their product. A high NPS indicates that customers are satisfied with the product and are likely to spread positive word-of-mouth, which in turn can lead to improved acquisition and higher user retention. On the other hand, a low NPS indicates that customers are not satisfied and may spread negative word-of-mouth, which can negatively affect customer acquisition and retention.
The typical components of an NPS calculator are:
Total number of detractors (people who rated the product between 0 and 6)
Total number of passives (people who rated the product between 7 and 8)
Total number of promoters (people who rated the product between 9 and 10)
Total number of reviews (detractors + passives + promoters)
To calculate your product NPS score using these components, the formula is:
NPS = (Total number of promoters - Total number of detractors) / Total number of reviews * 100
