How do you calculate NPS?
- Percentage of promoters minus percentage of passives
- Percentage of promoters minus percentage of detractors, divided by percentage of passives
- Percentage of promoters minus percentage of detractors
- Percentage of promoters
Explanation: The correct answer is ‘Percentage of promoters minus percentage of detractors.’ NPS, or Net Promoter Score, is a metric used to gauge customer loyalty and satisfaction with a company or product. It is calculated by subtracting the percentage of detractors (customers who rate their likelihood to recommend the product or service as 0 to 6 on a scale of 0 to 10) from the percentage of promoters (customers who rate their likelihood to recommend as 9 or 10). This calculation focuses on the extremes of customer sentiment, emphasizing the importance of enthusiastic promoters and identifying dissatisfied detractors. Subtracting detractors from promoters provides a clear indicator of overall customer satisfaction and loyalty. Passives, those who rate their likelihood to recommend as 7 or 8, are not directly factored into the calculation, but they still provide valuable insights into customer sentiment when analyzed separately. Therefore, the correct calculation for NPS involves solely the comparison between the percentage of promoters and detractors.
