How likely are your customers to recommend your business?

How to Calculate your NPS

We often work with clients who claim their customers choose them because of their great customer service, in the absence of any evidence to support this potentially biased position.

Developed by Bain & Co approximately 15 years ago, the Net Promoter Score (NPS) was developed as an easy way of judging the customer’s perception and came through amongst other options as the best approach to predict loyalty, referrals and other behaviour that drives business growth. All of this is based upon the simple customer question “What is the likelihood that you will recommend Company X to a friend or colleague?”. 

Those that score 7 or 8 are excluded from the calculation as “passives” at risk of switching to another choice, whilst the percentage that chose 9 or 10, the “promoters” are subtracted from the “detractors” (1-6) to calculate an NPS score.

Benchmark against your competitors

Before getting into industry variations, an NPS score above zero is considered “good”, +50 is “excellent,” and above 70 is considered “world class”. An NPS score allows companies to track progress over time as well as compare themselves against benchmark data for their industry. As you might imagine the NPS range for banks is lower than that for hotels.

And in this year’s survey with over 400 ActionCOACH clients in the UK, we are proud of an NPS score of 72, which is right up there with Apple, and we all know what raving fans Apple customers can be..

If you would like to discuss how to integrate NPS into your customer feedback, let’s connect.