The NPS value is a metric that measures the loyalty and satisfaction level of the users of a brand, company or service.
The NPS question is formulated by asking "How likely are you to recommend [NAME] to your friend or colleague on a scale from 0 to 10?" 0 means "not at all likely" and 10 means "extremely likely".
The respondents that answered from 0 to 6 are called "Detractors", while the respondents answered from 9 to 10 are called "Promoters". The NPS score is the difference between the Promoters and the Detractors.
Example
How likely are you to recommend ABC to your friend or colleague?
| Answer | Frequency |
| 0 - not at all likely | 4% |
| 1 | 3% |
| 2 | 1% |
| 3 | 0% |
| 4 | 1% |
| 5 | 2% |
| 6 | 4% |
| 7 | 9% |
| 8 | 16% |
| 9 | 18% |
| 10 - extremely likely | 42% |
% of Detractors: 4+3+1+0+1+2+4 = 15
% of Promoters: 18+42=60
% of Passives: 9+16 = 25
NPS = 60 - 15 = 45
Respondents' base and additional questions
It is recommended that the NPS question should be asked only for people that uses (or have used recently) a particular product of service, because otherwise the recommendation would not be based on experience and the results would be less valuable.
If a respondent is a Detractor or a Promoter, usually an open follow up question ("Why not?" / "Why yes?" respectively) is asked to understand the reasons and to receive more insights.
Interpretation
The results can vary from -100 (all the respondents being Detractors) to (+)100 (all the respondents being promoters).
The NPS averages depend on an industry, therefore it is not straightforward to tell what is a good or a bad NPS result. It is important to compare the score with the competitors' scores as well.
In general, any result below zero would mean that there are some major issues. 0-20 is a moderate score with room for improvement, 20-50 is good, indicating that customers are generally satisfied, 50-70 is a high degree of customer loyalty, and more than 70 is excellent, meaning very strong customer relationships.