What does Net Promoter Score (NPS) mean and how is it calculated?
Within AgilityHealth®, the NPS or Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of the stakeholder or peer to recommend a team or individual to others. It is used as a proxy for gauging the stakeholder or peer's overall satisfaction with the team or individual and the stakeholder or peer's loyalty to the team or individual.
Generally, an NPS score from 0-30 is good, 30- 70 is great, anything over 70 is excellent. A negative Net Promoter Score indicates improvement is needed.
- Promoters (users who rate 9-10 on a 1-10 scale): Best described as ambassadors and are very enthusiastic about the team or individual.
- Passives (users who rate 7-8 on a 1-10 scale): Best described as people who feel neutral about the team or individual and most likely won’t tarnish the team or individual's reputation. These responses are not included in the NPS calculation.
- Detractors (users who rate 0-6 on a 1-10 scale): Best described as dissatisfied and may damage the team or individual through negative word of mouth.
How is NPS calculated?
To calculate the NPS score, the following steps are followed:
- Break responses down by Detractors, Passives, and Promoters. Remember, Detractors have given a response of 0-6, Passives gave a response of 7-8 and Promoters gave a response of 9-10.
- Count how many responses are in the Detractors group and how many responses are in the Promoters group.
- Divide the number of responses in the Detractors group by the total number of assessment responses. Then divide the number of responses in the Promoters group by the number of assessment responses. This will give you a percentage total for each group.
- Then, subtract the percentage total of the Detractors from the percentage total of the Promoters and this equals the NPS score. Passives are not included in the NPS calculation.
The below image illustrates this formula:
Let's use an example to explain how NPS is calculated:
We'll calculate the NPS score from an assessment sent with the NPS question and a 0-10 response rating scale (with 10 being the best) that received 100 responses.
- The formula for NPS is: (Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
- You received 100 responses to your assessment and they break down into the following:
- 10 responses were in the 0–6 range (Detractors)
- 20 responses were in the 7–8 range (Passives)
- 70 responses were in the 9–10 range (Promoters)
- To get the percentage for each group, you take the number of responses for that group and divide it by 100. For each group in the above example, you would get 10%, 20%, and 70% respectively.
- To finish up, you then subtract 10% (Detractors) from 70% (Promoters), which equals 60%.
Since a Net Promoter Score is always shown as just an integer and not a percentage, your NPS is simply 60. (Remember, you can have a negative NPS, as your score can range from -100 to +100.)