NET PROMOTER SCORE EXPLAINED
Net Promoter Score Calculation Customers are surveyed on one single question. They are asked to rate on an 11-point scale the likelihood of recommending the company or brand to a friend or colleague. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?” Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters.
The Net Promoter Score is an index
The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100 called the Net Promoter Score. At one end of the spectrum, if when surveyed, all of the customers gave a score lower or equal to 6, this would lead to an NPS of -100. On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.
ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
0
1
4 2 6 8
5 3 7 9 10
DETRACTORS ‘Detractors’ gave a score lower or equal to 6. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth.
PASSIVES ‘Passives’ gave a score of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of- mouth, but are not enthusiastic enough about your products or services to actually promote them.
PROMOTERS ‘Promoters’ answered 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.
Not likely to recommend
Extremely likely to recommend
NPS = % - %
National Black MBA Association will use net promoter score to:
• Establish a baseline with our various stakeholders • Develop and execute programs that grow NPS. • Drive membership and revenue growth.
National Black MBA Association ® Stakeholder Pulse Checks November 2019
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