Net Promoter Score (NPS): How to Create, Calculate & Analyze

Net Promoter Score (NPS) helps measure customer loyalty and satisfaction with one key question. Learn how to calculate, analyze, and improve it

At its core, NPS is based on a single question:

“How likely are you to recommend us to a friend or colleague?”

Customers respond on a scale of 0 to 10, and their answers fall into three groups:

• Promoters (9–10): Loyal fans who love your brand and actively recommend it.
• Passives (7–8): Satisfied customers, but not enthusiastic enough to promote.
• Detractors (0–6): Unhappy customers who may damage your reputation by sharing negative feedback.

The NPS formula is:
NPS = % of Promoters – % of Detractors

Passives don’t directly affect the score but still provide useful feedback.

Why NPS is Important

NPS is more than just a score—it’s a window into future growth. A high NPS signals that your customers are not only satisfied but also advocating for your brand. These promoters act like a free marketing engine, spreading positive word-of-mouth that advertising alone cannot match. This creates a cycle of growth where happy customers bring in more customers, who then become promoters.

However, a score alone is not enough. By combining NPS with sentiment analysis, companies gain context that explains what drives customer satisfaction. For example, asking follow-up questions like “Why did you give this score?” helps uncover strengths and weaknesses. Over time, businesses can rally their teams around one objective: turning more customers into enthusiastic promoters.

How to Calculate NPS

To calculate NPS, subtract the percentage of detractors from the percentage of promoters. The result is a score between -100 and +100.

• A positive score means more promoters than detractors.
• A negative score means more detractors than promoters.

For instance, if 60% are promoters, 20% are detractors, and 20% are passives:

NPS = 60 – 20 = 40

This number provides a clear view of customer sentiment at a glance.

How to Analyze NPS

NPS analysis goes beyond the number. Companies should compare their score against industry benchmarks. For example, U.S. benchmarks range from near 0 for internet providers to 65 for department stores.

• Good NPS: Anything above 0 shows you have more promoters than detractors. Scores above 50 reflect strong customer loyalty, while 70+ is excellent.
• Bad NPS: Any score below 0 signals more dissatisfaction than loyalty. Still, context matters. A negative score could be better than competitors, but it’s a wake-up call to act quickly, improve, and convert detractors into promoters.

Sentiment analysis enhances NPS because it explains why customers feel the way they do. This link between scores and actual feedback is vital for continuous improvement.

How to Collect NPS Feedback

There are two popular ways to run NPS surveys:

1. Website Survey
   • Place pop-up surveys on high-traffic pages, like purchase confirmations or exit pages.
   • Ask the NPS question, then follow up depending on the response:
     • For detractors or passives, ask: “What can we do better?”
     • For promoters, ask: “What’s the main reason for your score?”
2. Email Survey
   • Send an email within 15–30 days after a purchase or interaction.
   • While response rates are lower, the feedback tends to be more thoughtful since customers have had time to experience the product.

Adding open-text fields and analyzing feedback with sentiment analysis tools provides deeper insight into customer experiences.

How to Read NPS Survey Results

NPS data not only shows satisfaction levels but also indicates the potential for growth or decline. To analyze results effectively:

• Segment Data: Break scores down by customer type (new vs. repeat, age, spending level).
• Track Trends: Monitor how scores change over time to spot issues early or evaluate improvements.
• Close the Loop: Follow up with customers to address concerns or strengthen positive experiences. This personal touch often turns passives into promoters.

Advanced methods, such as natural language processing (NLP) and machine learning, can uncover patterns in free-text responses to highlight improvement areas.

NPS in Simple Words

NPS is like a health check for your business. It tells you if customers love your product enough to recommend it, or if they’re frustrated and ready to leave. The score ranges from -100 to +100, and when paired with sentiment analysis, it becomes even more powerful.

A high NPS means more customers are cheering for you; a negative score means it’s time to pay attention and fix things. But the real treasure lies in the customer comments. Asking why customers gave their rating reveals what you’re doing well and what you need to improve.

In short, NPS is not just a metric—it’s a guide to creating better experiences, building loyalty, and driving long-term business growth.

The formula used to calculate Net Promoter Score (NPS), which subtracts the percentage of detractors from the percentage of promoters, is sourced from Wikipedia’s explanation of NPS.
https://en.wikipedia.org/wiki/Net_promoter_score