This article is an edited version of one that is published on the Hubspot website and can be found in full here: https://blog.hubspot.com/service/what-is-nps
TruNPS® is based upon and equivocal to the NPS® scores but utilizes our 0-9 scale rather than the 0-10 utilized in traditional NPS questionnaires.
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NPS is a typical benchmark companies measure to evaluate and improve customer loyalty. NPS is different from other benchmarks, such as customer satisfaction score or customer effort score, in that it measures a customer's overall sentiment about a brand, versus their perception of a singular interaction or purchase.
Customers are asked a simple question "On a scale of 0 to 9, how likely are you to recommend us to a friend?" The responses to this question can be categorized into three groups:
- Promoters: Customers who answer the question with 8-9
- Passives: Customers who answer the question with 6-7
- Detractors: Customers who answer the question with 0-5
As you might be able to infer from the names of these groups, promoters are enthusiastic, loyal customers who will tell their friends about your business and bring in new customers. Passives are indifferent and could become promoters -- or they could switch to your competition. Detractors are unhappy customers, and not only are you at risk of losing them, they could do damage to your brand by sharing their bad experiences with other people.
Your Net Promoter Score is calculated by subtracting the percentage of detractors (customers who wouldn't recommend you) from the percentage of promoters (customers who would recommend you). The score is than presented on a scale from -100 to 100.
The key to achieving a high NPS is having a greater number of promoters than detractors -- like, a lot more.
For example, imagine you surveyed 100 customers. If 40% were detractors and only 50% were promoters, your NPS would be 10 (50% - 40% = 10).
But if you surveyed your 100 customers and only 20% were detractors, your NPS score would jump up to 30 -- representing a 20% greater chance your customers will recommend you to a friend.
If you’re still not quite sure how it all works, this simple but informative video should help.