Have You Calculated Your Net Promoter® Score

The Net Promoter Score (NPS), developed by Satmetrix, Bain & Company and Fred Reichheld, is a measure of customer satisfaction, loyalty, and the extent to which your customers actively sell on your behalf by recommending your company, and the extent to which your current customers actually hinder your sales efforts by providing negative feedback to prospective customers. Companies with high NPS typically have well functioning businesses with good growth potential.

To determine your NPS, survey your customers and ask one simple question:

How likely is it that you would you recommend [Your Company] to a friend or colleague?

Have them answer on a scale of 0-10, where 10 equals extremely likely, and 0 equals not at all likely.

Then calculate your results:

1. Determine the # of answers in each category. “Promoters” are those who answer 9 or 10, “Passives” answer 7 or 8, and “Detractors” answer 0-6.
2. Determine your percentage of “Promoters” and your percentage of "Detractors.”
3. Subtract the percentage of “Detractors” from the percentage of “Promoters” to get your NPS.

For example, if I got 10 responses, of which 3 were “Promoters,” 6 were “Passives,” and 1 was a “Detractor,” then my NPS would be 20% (30% - 10% = 20%).

So what is a good score? According to the Net Promoter website, the best companies score in the 50-80% range, while average companies score in the 5-10% range. However, numbers are best judged by industry.

To see how you stack up in your industry, see the How Does Your Score Compare page on the Net Promoter website

For more information about how to calculate your score, and what it means, see the How to Calculate Your Score page.

Side Note: Based on a recent survey we conducted, PaySimple is proud to have achieved a 60% NPS. We thank our customers for their loyalty and support, and we continue to focus on providing even better service in the future.