Net Promoter Score was created by Fred Reichheld and his team at Bain & Co. in 2003.It is now widely used by businesses and industries the world over. Net Promoter Score is one of the main indicators of customer satisfaction. Companies  often use Net Promoter Score as a more general indicator of customer loyalty and brand devotion. It is a loyalty metric, used to measure the rate at which customers would refer the company’s products or services to their friends and family. Thus, it measures the referral rate of a company or brand.  It is also a proxy for gauging the customer’s overall satisfaction and is different from customer satisfaction. In simplest words, the question asked is, "How likely are you to recommend the brand to a friend, relative or colleague?" It is often called as ‘The Ultimate Question’ to measure a customer’s loyalty.

Net Promoter Score Questions

‘How likely are you to recommend this brand to family and friends or colleagues?’ is the only question one needs to ask to capture the Net Promoter Score. Its singularity makes it more precious because after knowing the answer to this question, the concerned company can run programmes specifically to improve this score.

Net Promoter Score Calculation

The administrators of the survey score on a scale of 0-10. On the basis of where their answers lie on this scale, the authorities segregate the respondent customers under 3 basic sub categories:
  1. Detractors
  2. Passives
  3. Promoters
  1. DETRACTORS: Scores between 0 - 6 These are the customers who are unhappy with the concerned brand. They are also the ones who are most likely to give a negative review to the company and hurt its image.
  2. PASSIVES: Scores between 7 - 8 These customers are satisfied and might even like the company, but they might like some other company better. They will easily switch to another company if they find a better deal.
  3. PROMOTERS: Scores between 9 - 10 These customers love the concerned company; they stick to its products and services and even recommend it to other people.

Net Promoter Score Formula:

After analyzing the scores of the respondents, the authorities segregate the respondents into the 3 categories mentioned before: Detractors, Passives and Promoters. They count the total number of Promoters and the total number of Detractors. Then they apply this simple arithmetic formula: (Promoters — Detractors)/(Respondents)  x 100

The Net Promoter Score is an index obtained from this formula. Companies usually express this index as a percentage.

Benefits of Net Promoter Score

  • Tells how likely a customer is to promote the company.
  • Reveals how many customers will stick to a company even after more lucrative deals from competitors.
  • Identifying who such customers are and estimating their quantity.
  • Does a comparative analysis of a company against its competitors.
  • It lets a company compare itself to its counterparts in different markets.
  • A positive correlation between the Net Promoter Score and the growth of a company exists.
  • All this allows the concerned authorities to make strategies according to real time data and increase revenues. Furthermore, calculating Net Promoter Score helps in improving a company’s business. But to avail the benefits of Net Promoter Score, it is important to analyse it properly.

    Analyzing Net Promoter Score

    Tag and categories data

    After calculating Net Promoter Score, the concerned authorities have to tag the customer feedback. It is the first and the most time taking process. Later, this small step allows the authorities to segment customers according to their feedback. They can also summarize the data according to this categorization and make key decisions. They may also add new columns to store this data. This will allow them to track themes without any confusion.

    Identify common themes

    After tagging the comments and categorizing the customers into common denominators, the company must identify a common theme. For this they can have a detailed look at the feedback from the passives and detractors.  They must look if their responses share any common themes.

    It is equally important to investigate the frequency of incidence of these themes. The authorities must also look into where they can apply this categorized, valuable data. Further, on investigation of the feedback from these customers the administrators can identify a common delivery issue. The analysts can later link it to poor internal processes. Once the concerned authorities address the internal problem, the number of passives and detractors in the region will reduce while their promoters will increase. This will occur along with the increase in overall Net Promoter Score and related indices. All this will happen only if the authorities act on the data collected.

    Predict future consumer behaviour

    After looking for patterns and identifying common trends, the company must try to look at their customer’s future consumer behavior.

    • If the Net Promoter Score go through a cycle.
    • Or if there are certain times of year that the number and frequency of negative themes grow.
    • The analysts might find that such behavior is timed with a particularly busy time of year.
    • Or in sync with any other related activity of the company.

    The company can use insights like this to improve their customer service and increase the overall brand value. This will increase customer satisfaction, customer loyalty, brand ambassadors and eventually, company revenue.

    Act on the information

    Once the companies complete their analysis they will know where they need to improve. According to the results, the companies can even prioritise their services, make strategies and take initiatives. They can also take into account factors like cost, resource availability and dependencies to maximize their profit.


    The company, under any circumstances must not forget to communicate with their customers using whatever channels available to them.


    Posted in Analytics, Customer Feedback, Customer Satisfaction, Survey Questions, Surveys, Uncategorized

    Tagged customer loyalty, customer satisfaction, Net Promoter Score, net promoter score calculation, net promoter score formula, net promoter score question, net promoteter score analysis