What You Need To Know About NPS

March 2, 2021
Emilie Mitchell

What is a net promoter score?

Also known as NPS, a Net Promoter Score is a common measure used to rate how likely consumers would be to recommend your business to others. A NPS is arguably one of the best predictors of a company's long-term growth.

How do you calculate NPS?

Image displaying how to calculate a net promoter score

Your business's NPS is calculated from first-hand feedback from current or potential consumers, typically in a survey format. These consumers can choose to rate your business on a scale from 0, would not recommend, to 10, would highly recommend. Calculating the Net Promoter Score for your business is easier than you might think. To calculate your NPS, the percentage of your detractors is subtracted from the percentage of your promoters. What are detractors and promoters? Let's break it down.

Promoters are consumers who rate either a 9 or 10 and are extremely likely to recommend your business to others.

Passives are consumers who rate either a 7 or 8 and are neutral about recommending your business to others.

Detractors are consumers who rate a 0-6 and are not at all likely to recommend your business to others.

What is a good Net Promoter Score?

Net Promoter Scores can range anywhere between -100 to 100. A good NPS is typically considered to be any positive number (0-100.) According to Survey Monkey's global benchmark data consisting of over 150,000 organizations, the average NPS is 32. However, comparing your business to all other organizations rather than just those in your industry is not always the best representation of how you are doing. This is because the customer experience per industry can significantly vary. To best gauge how your business ranks, compare your score to others in your specific industry.

Image displaying the net promoter score scale

Which companies have some of the best NPS?

Apple, 47

Amazon, 69

Costco, 79

Gucci, 45

Honda, 49

Intel, 52

Microsoft, 45

Samsung, 67

Starbucks, 77

Target, 43

Is my Net Promoter Score too low?

Is your business's Net Promoter Score on the lower end? Don't worry, not all successful businesses have this high of scores. Take the scores of these well-known companies below, for example.

Coca-Cola, 0

CVS, -10

Disney, -7

Hershey, -1

Home Depot, -5

Ikea, -9

Lexus, -9

McDonalds, -8

Nike, 0

Walmart, -4

Can I raise my NPS?

Yes. Your first Net Promoter Score is not permanent and has the ability to grow along with your business. One way to help improve your score is by reaching out to your passive audience and determining what's holding them back from becoming promoters. Once you are aware of some areas where your business isn't meeting your consumers expectations, you can take action and form plans for greater success.

Curious what the Net Promoter Score for your business is? Calculating this is part of our validation process at WynHouse.

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