{"id":54631,"date":"2022-09-08T15:33:07","date_gmt":"2022-09-08T19:33:07","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=54631"},"modified":"2022-09-09T09:21:44","modified_gmt":"2022-09-09T13:21:44","slug":"how-is-nps-calculated","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/how-is-nps-calculated\/","title":{"rendered":"CX Metrics: How is NPS Calculated?"},"content":{"rendered":"

Could there really be one question to rule them all<\/em>?<\/p>\n

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As we continue our deeper look at CX metrics that drive strategy and business decisions, we\u2019d like to take a closer look at calculating Net Promoter Score<\/a>\u2014or NPS. Getting a better understanding of exactly how your organization\u2019s NPS is determined can provide better clarity on what you\u2019re measuring.<\/p>\n

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We\u2019ve talked before about how important NPS is in learning about the reasons behind your customer satisfaction levels and overall loyalty to your brand. Through this analysis, you can not only gain new customers, but also take advantage of the thing that makes NPS truly powerful\u2014expansion revenue. Expansion revenue is revenue gained from your existing customers. The more loyal your customers, the more likely they are to go to you before any other brand and increase their spend, keeping you relevant and profitable.<\/p>\n

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In essence, NPS can help you determine greater profitability forecasts when used properly.<\/p>\n

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\"A<\/a><\/p>\n

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Step-by-step Calculation<\/h2>\n

Before you get to the calculation, make sure you have completed a survey with respondents where you include a rating question that measures NPS. Most NPS surveys simply ask, \u201cHow likely are you to recommend [product\/service\/brand] to others?\u201d using a 0-10 scale.<\/p>\n

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\"CSAT<\/a><\/p>\n

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1. Separate your respondents<\/h2>\n

Let\u2019s visualize this through a real-world example. Hope Clothing sends out an NPS survey<\/a> and they have 100 respondents. Each respondent rates their experience between 0 and 10, which marks them as one of 3 subtypes of customers:<\/p>\n

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