What on earth is NPS?

Find out what NPS is and why it's one of the most important metrics for you to track.
Letitia Stevenson
March 24, 2021

NPS or ‘Net Promoter Score', is a customer experience metric used by businesses all around the globe to measure customer satisfaction, advocacy, and loyalty. Your NPS indicates how likely your customers are to use your services again and recommend your business to their friends and family. With word of mouth being one of the most powerful forms of marketing, NPS one of the most important metrics for you to track.

The NPS system was created by Bain and Company (a global consultancy) and is a score from -100 - 100 (not a percentage). Your score is worked out by asking your customers one simple question: ‘How likely are you to recommend us to your friends and family?’ Customers then answer by choosing from a number from 0 (not likely) to 10 (likely).  It’s seriously that simple!

Anyone that scores you 0-6 is a ‘detractor’, 7-8 a ‘passive’ and 9-10 are ‘promoters’. Naturally, promoters are what you want the most of.

Your NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

An NPS between 0 - 30 is considered good and over 50 is considered excellent, so if your NPS is above 50 you’re smashing it! For comparison, Telco companies typically sit at around 0 or in the negatives, which means they’ve got more detractors than promoters... (insert ‘surprised’ gasp here).

Want to know what your NPS is? You can even calculate it from your online reviews, like Google reviews. To do this, count up the number of 5-star reviews (your promoters) and divide by the proportion of 1 star + 2 stars + 3 stars (your detractors).  If you’re after an easier way to calculate and monitor your NPS, in just one click you can connect your Google Reviews with  Yonder and immediately see your NPS, how it’s trending over time and much more.  

If you'd like to learn more about the power of NPS and how you can use it to further your tourism business, then check out our article 'Using NPS in Tourism' which dives deeper into its many benefits.

Recent posts

How exceptional businesses use customer feedback to grow