Advanced Analytics, Business Analytics, Customer Analytics, Data Mining, Net Promoter Score, NPS, Predictive Modeling, Statistical Analysis, Strategy
Net Promoter Score: How to Calculate Your NPS
Net Promoter Score(NPS) is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors. By asking one simple question — How likely is it that you would recommend [Company X] to a friend or colleague? — you can track these groups and get a clear measure of your company’s performance through its customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows:
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Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
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Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
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Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
To calculate your company’s Net Promoter Score (NPS), take the percentage of customers who are Promoters and subtract the percentage who are Detractors.
Hope this helps and is useful.
Shailendra
Shailendra is a thought-leader and visionary in the cognitive and analytics space. With the sole motto of making money out of data, he has helped multiple organisations across the globe to generate incremental revenue or optimise cost using machine learning and advanced analytics techniques.
