Quick Answer: How Is NPS Calculated?

Why do companies use NPS?

One of the key benefits of the Net Promoter Score (NPS) is that it measures customer loyalty and therefore the likelihood of gaining new and repeat business.

This measure is useful for forecasting business growth, cash-flow, as well as assess the health of your brand and overall customer satisfaction..

What does an NPS score of 50 mean?

Given the NPS range of -100 to +100, a positive score or NPS above 0 is considered “good,” +50 is considered “excellent,” and above 70 is considered “world-class.” Based on global NPS standards, any score above 0 is “good.” This means the majority of your customer base is more loyal.

What is Apple’s NPS score?

72According to NPS Benchmarks, Apple’s NPS score in 2017 was a resounding 72, which is significantly higher than the average NPS score of the consumer electronics industry.

How is NPS score calculated?

The Net Promoter Score (NPS) is determined by subtracting the percentage of customers who are detractors from the percentage who are promoters. … On the other end of the spectrum, if all of the customers were answering the question with a 9 or 10, then the total Net Promoter Score would be 100.

How do you calculate NPS on a 5 point scale?

To calculate your net promoter score, subtract the percentage of Detractors from the percentage of Promoters. The number you’re left with is your NPS, it’s as simple as that. The final score is not expressed as a percentage, but as a number between -100 and +100.

Can a net promoter score be negative?

Net Promoter Score is always expressed as a number from -100 to 100; the score is negative when a company has more detractors than promoters, and positive in the opposite situation.

What is the average NPS score?

According to our global benchmark data, which accounts for the NPS of more than 150,000 organizations, the average score is +32. Here’s a closer look at the global benchmark numbers: The lower quartile of organizations (or the bottom 25% of performers) have an NPS of 0 or lower. The median NPS is +44.

What’s a good NPS score?

Any NPS score above 0 is “good”. It means that your audience is more loyal than not. Anything above 20 is considered “favourable”. Bain & Co, the source of the NPS system, suggests that above 50 is excellent, and above 80 is world class.

What is wrong with NPS?

First, the “research” behind the NPS claims is flawed. … Second, the calculation of the metric (a difference score) results in an ambiguous score that is difficult to interpret. Third, the NPS is insufficient in measuring the multidimensional nature of customer loyalty.

Why NPS is a bad metric?

If the Net Promoter Score was a meaningful and useful metric, it should predict actual consumer behavior. … The result: NPS is a terrible predictor of behavior in banking.

What is a bad NPS score?

What is a good NPS score? Generally speaking, a Net Promoter Score that is below 0 would be an indication that your business has a lot of issues to address. A score between 0 and 30 is a good range to be in, however, there is still room for progress.

What company has the highest NPS score?

AppleNet Promoter Score benchmarks for top brandsCompanyNPS Score1Apple472Google113Microsoft454Coca-Cola082 more rows

What is Amazon’s NPS score?

69When it comes to customer loyalty, Amazon achieves an NPS of 69.

How reliable is NPS?

The data so far suggests the NPS is a reliable measure and its single-item top-box scoring system correlates with current and historical revenue and may predict future growth in some circumstances and in some industries. But there’s little evidence the NPS is better than customer satisfaction.

What is a good candidate NPS?

A positive Net Promoter Score is good because it means your promoters outnumber your detractors. An NPS at 50 or above is considered excellent. And the closer to 100 your score gets, the more promoters — and fewer detractors — you have.