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Improving Your Customer Experience via NPS Surveys

In today's customer-centric business world, there's a fundamental rule to follow: give your customers a voice. This isn't just a fictional gesture, it involves actively seeking their feedback and taking decisive actions based on their ideas. By using a Net Promoter Score (NPS), you can gather valuable information to make significant changes that can be provided to both current and prospective customers. 


Let's elaborate on the topic to explore the basics of NPS, how to measure it, its formula, and how AI can simplify the process of calculating NPS scores. You will learn about a solution for creating and analyzing NPS scores at the end.


What is NPS?

NPS is a customer loyalty and satisfaction metric that measures the likelihood of customers recommending a product or service to others. It is based on one simple question with a scale of 0 to 10.


In other words, NPS is a simple yet powerful way to measure customer loyalty and satisfaction. It is based on a single question: "On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?" 




The responses are categorized into three groups:


  • Promoters (9-10)

  • Passives (7-8)

  • Detractors (0-6)




The NPS score is calculated using a formula resulting in a score between -100 and +100. Measuring should also be done at the correct stage and with corresponding users to avoid several fallbacks.


How to Calculate NPS Score

No special math skills are needed to get your score. Here is the formula for that:


Net Promoter Score = Total % of Promoters  – total % of Detractors


Subtract the percentage of customers who would not recommend your product or service from the percentage of those who would. For example, your Net Promoter Score would look like this:


70% promoters – 10% detractors = 60 is your NPS Score.


NPS for SaaS Companies

In the context of NPS scores for SaaS companies, the calculations typically provide scores ranging from -100 up to 100. However, the challenge lies in determining whether a score is considered average for the industry. The mathematical average of 0 does not convey any meaning in this case. To address this, we conducted a benchmarking analysis to provide insights into the performance of SaaS companies and ensure a grounded understanding of their NPS scores.