The Net Promoter Score is a commonly used measurement for customer loyalty, where you ask your customer how likely it is that they would recommend your product or service to their friends, family or colleagues. The answer options run from 0 (= very unlikely) to 10 (= very likely).
There are two different methods of calculating the NPS; classic NPS calculation and the European NPS calculation. This article explains the european standard calculation.
First of all, you might want to know why there is an european calculation format of the NPS. The answer is, based on academic research, respondents from non-european countries, such as America, tend to give extremer scores then european respondents. European respondent tend to be more restrained. However, in the classis NPS calculation an 8 doesn't have any weight and therefore this score will be ignored. In the european calculation this changes and an 8 counts as a promoter and a 6 as passive.
For the Net Promoter Score calculation, you take the percentage of promoters and you deduct the percentage of detractors from them. The result is displayed as an absolute score, not as a percentage, and this score is between -100 and +100.
On the basis of their given scores, respondents are divided into three groups:
- Detractors - the percentage of respondents who gave a score between 0 and 5
- Passives - the percentage of respondents who gave a 6 or 7
- Promoters - the percentage of respondents who gave a 8, 9 or 10
You have conducted an NPS research and have 1000 responses to your NPS question. The responses can be categorized as follows:
- 370 out of 1000 (37%) have answered with a 8, 9 or 10 (Promoters)
- 270 out of 1000 (27%) have answered with a 6 or 7 (Passives)
- 360 out of 1000 (36%) have answered with a score between 0 and 5 (Detractors).
You now take the percentage of Promoters (37) and deduct the percentage of Detractors (27), which leads to the Net Promoter Score of +10.
Please note: this calculations is applied to the records that meet the requirements that you have set in your period selection, your filter selection and the default selection for available records for reporting.