The Net Promoter Score (NPS) is used to gauge client happiness and customer loyalty. It is founded on a single survey question that asks participants to rate their propensity to suggest an organization, item, or service to others. NPS was created by Fred Reichheld, Bain & Company, and Satmetrix and has become well-known for its clarity and open methodology.
Calculating NPS follows a 3-step approach:
1. Survey Customers
2. Categorize Respondents
3. Calculate NPS
Customers are segmented into 3 groups based on their responses:
1. Promoters – These customers are extremely happy customers who aggressively promote a brand. They give a value of 9 to 10 to the company. These are the folks we want to cultivate because they account for more than 80% of recommendations.
2. Passives – The folks are content but not actively involved in the promotion. This group's repurchase is 50% or less than that of the promoters. They are more influenced by other people and are more likely to change their minds if others do.
3. Detractors – These customers voice displeasure and endanger a company's reputation. They give the organization a score ranging from 0 to 6. They may appear profitable at first, since they are acquiring customers, but their overall effect of encouraging others not to purchase is damaging to the company as a whole.
The percentage of detractors is subtracted from the percentage of promoters. This final score is used to measure Customer Loyalty. This method is used by many organizations, including Fortune 500 companies, to enhance their goods and services and monitor consumer happiness over time.
With an understanding of how NPS is calculated, organizations can evaluate their Customer Loyalty objectively and track improvements over time, helping them stay ahead in today's competitive landscape. Organizations can skyrocket their NPS by converting detractors into promoters.
This PowerPoint presentation discusses how to calculate and obtain the NPS for your organization. This deck also includes slide templates you can use in your organization presentations.
Got a question about the product? Email us at flevypro@flevy.com.
Source: Best Practices in Customer Experience, Customer Loyalty PowerPoint Slides: Net Promoter Score (NPS) PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This PPT slide provides a structured overview of the process for calculating the Net Promoter Score (NPS), a crucial metric for assessing customer loyalty and satisfaction. It outlines 3 key steps involved in this methodology.
The first step, "Survey Customers," emphasizes the importance of gathering feedback from clients who appreciate the service or product. This initial survey phase is critical as it allows organizations to gain insights into customer preferences and experiences, which can inform future strategies.
The second step, "Categorize Respondents," involves classifying survey participants based on their likelihood to recommend the company’s offerings. Respondents are asked a pivotal question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?" This classification divides customers into 3 groups: promoters, passives, and detractors, based on their responses. Understanding these categories helps organizations identify strengths and weaknesses in customer perception.
The final step, "Calculate NPS," explains how to derive the NPS score. Organizations must first determine the percentage of promoters and detractors from the total respondents. The NPS is calculated by subtracting the percentage of detractors from that of promoters, providing a clear numerical representation of customer loyalty.
This slide serves as a foundational guide for organizations looking to implement or refine their NPS processes. It highlights the significance of customer feedback and categorization in driving strategic improvements and enhancing overall customer engagement.
Did you need more documents?
Consider a FlevyPro subscription from $39/month. View plans here.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
Customer Loyalty Customer Retention NPS Net Promoter Score Customer Satisfaction Customer Experience User Experience Customer Strategy Key Performance Indicators KPI Critical Success Factors Key Success Factors Product Management Cognitive Bias Employee Engagement Employee Management Workforce Management Relationship Marketing
![]() |
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more. |