What is NPS?

What is NPS?

The Net Promoter Score (NPS) is a metric used to calculate a customer’s satisfaction with a company’s products or services. The score measures the customer’s overall experience and willingness to recommend the company’s products or services to others. The NPS is an index ranging from -100 to 100.

How is it calculated?

Customers are asked to respond to the question “How likely are you to recommend this company’s product or service to a friend or colleague?” using a 0-10 scale. Based on their ratings, customers are categorized as follows:

Detractors

Detractors answered with a score lower or equal to 6 on the NPS scale. This indicates they are not satisfied with the company’s product or service and they would not recommend the product or service to others. These customers may share negative reviews about the company.

Passives

Passives answered with a score of 7 or 8. This indicates they are content with the company’s product or service, but would easily switch to a competitor if given the chance. They would not recommend the product to others, but would not share negative reviews about the company, either.

Promoters

Promoters answered with a score of 9 or 10. These customers are very satisfied with the company’s products or services and have had a positive overall experience. They would recommend the company’s products and services to others.

The NPS is calculated as the percentage of promoters subtracted by the percentage of detractors.

What is Forte’s NPS?

In 2015, an independent market research company calculated Forte Research System’s NPS by interviewing a majority of the company’s enterprise customers. The results concluded Forte has an NPS of 100. This means every interviewed customer rated Forte as a 9 or 10 on the NPS scale.

nps-graphic

Net Promoter Score measures the tendency to actively recommend a product to peers and is calculated by subtracting the percentage of Detractors (0-6 on the scale of 0-10) from the percentage of Promoters (9-10 on same scale) According to the originators of the NPS metric, the average American company scores less than +10, while the highest performing organizations score between +50 and +80. These values may vary considerably from sector to sector and from culture to culture.

This result is significant because, according to the originators of the NPS metric, the average American company scores less than +10, while the highest performing organizations score between +50 and +80.