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Net Promoter Score |
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The Net Promoter Score (NPS) is based on research reported in the Harvard Business Review.
Based on more than 400 companies representing 28 industries and over 130,000 customer survey
responses, an index has been developed that links survey responses with actual customer behavior –
purchasing patterns and referrals – and ultimately with company growth. This research provides a
strong correlation between a company’s growth rate and the percentage of its customers who are promoters –
that is, those who say they are extremely likely to recommend the company to a friend or colleague.
Rationale
After analyzing hundreds of customer survey questions, the researchers at Bain & Co. found one question
that can be linked directly with the growth rate of a company. Based on the likelihood of recommending a
company’s products or services to friends or colleagues, the index is calculated by taking the percentage of
promoters and subtracting the percentage of detractors. The passively satisfied are not included in the calculation.
Company size has no relationship to their net promoter status.
How is the score calculated?
The scale used for the Net Promoter Score is 1 to 10 where 1 represents not at all likely to recommend and 10
represents extremely likely to recommend. Respondents that give scores of 9 & 10 are classified as promoters.
Those giving scores of 1 – 6 are detractors and scores of 7 & 8 are respondents that are passively satisfied.
The NPS is calculated by taking the percentage of promoters (those scoring 9 or 10) and subtracting the
percentage of detractors (those scoring 1 through 6). The “passively satisfied” (those scoring 7 or 8)
are not included in the calculation. Company size has no relationship to its net promoter status.
What is a good score? What does it mean?
Strategic Performance Group LLC (SPG) has been tracking the NPS’s of companies since the article appeared in
Harvard Business Review in late 2003. Within SPG’s database of results, the lowest score to date is -14.3
while the highest score is 78.6. The average score is 31.1. The NPS has become an integral component of customer
satisfaction surveys conducted by SPG.
The maximum attainable NPS is 100 and the lowest NPS is -100. SPG has created a rating scale to interpret the scores.
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NPS Rating
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SPG’s Interpretation
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100
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Perfect
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85 to 99
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Spectacular
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70 to 84
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Excellent
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55 to 69
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Very Good
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40 to 54
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Good
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25 to 39
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Average
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0 to 24
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Mediocre
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-25 to -1
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Poor
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-50 to -26
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Terrible
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-100 to -51
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Abysmal
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How much should you rely on it?
Although the NPS can be used as a standalone indicator, we recommend that it be used in conjunction with the Customer
Satisfaction Index (CSI). The CSI is broader in scope and can closely pinpoint areas of concern to customers.
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Message from the President |
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Thank you for visiting our web site. Please contact us with your inquiries and we will respond in a timely manner.
Best regards,
Jim Sauer, President, SPG.
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