An Essential Guide to Net Promoter Score (NPS)

Promotors , Passives and Detractors

Experts say, “Loyal customers and employees make your business successful”- they are worth their weight in gold. The customer satisfaction survey wouldn’t lead to a meaningful change in the new paradigm, so we need Reichheld’s Net promoter score (NPS Score) for a company to measure loyalty throughout the customer journey. The highest level of satisfaction is loyalty. The returning customer and word of mouth would be the ultimate competitive advantage to make you a market player.

What is the Net Promoter Score (NPS)?

Net Promoter Score is a measurement used to understand the customer’s loyalty, and how likely they would refer the product/service to others. The inputs are taken from the customers in the form of a survey with the straightforward question “On a scale of 0-10, how you would likely to recommend our product/services to a friend”.

NPS score acts as a critical metric at the strategy level as a predictor of business growth. When the NPS score is high or even higher than the industry average (for the B2B software industry, the NPS score is likely to be falling between 40-50), which denotes business is a good shape if it is low then the company has to take some steps to address the problem. 

Transactional vs Relational NPS Survey

Relational NPS score are deployed regularly to find how the customer is feeling about our product or services It’s a periodic pulse that could be used year-over-year to produce a benchmark for company success. 

Transactional NPS surveys are sent once a customer interacts with your company it is used to understand customer granular satisfaction and provide feedback on a particular topic. 

These data could be used to understand your customer at a micro and a macro level.

How to Create your NPS survey? 

NPS survey should be framed to gain proper insight from the customer. The question should be based on the center of customer issues rather than “How we do questions”. We should be able to segment and quantify the data being collected from the NPS survey. The questions should be a mix of our short-term and long-term long goals. The most popular question of the NPS survey “how likely would you recommend us to your friends and family”.

Based on this, other open-ended questions like a reason for the above, how we can improve your experience, are there any specifics that require improvement, and considering the privacy policy a consent to follow up customers should also be a part of the questionnaires.

How to calculate NPS score? 

NPS score is measure with a single question on a scale of 0-10 and reported with -100% to 100% with 100% being the desirable one. 

Respondents give a rating on a scale of 0-10, with 0 (Not likely) and 10 (extremely likely), and based on the response, it has been categorized into 3 segments. 

Promoter (9-10): are loyal enthusiastic customers or employees who would recommend your organization to their friends or colleague, they are your growth fuel.

Passive (7-8): people in the middle are satisfied but they are vulnerable to competitors offering. 

Detractors (0-6): They are likely going to churn away from your business and damage your growth by negative word of mouth.

For example:

You have 10 surveys out of which 5 are promoter with a score ranging 9-10, 2 passive (7-8), and 3 detractors falling between the score range (0-6)

NPS (Net Promoter Score) =% Promoter – % detractor

NPS calculation = (5/10)*100 – (3/10) *100

                             = 50% – 30%

         NPS Score = 20%

Why is NPS score essential? 

NPS score is a core metric of the customer engagement program. NPS score indicates the health of a company and facilitates you in realizing the customer perception of your business. By calculating the NPS score, it will help you to identify detractors (Unhappy customers), promotors (happy customers). 

Identifying detractors is a critical step in the NPS survey. Unhappy customers can ruin the brand that took years to build. Once you identify detractors, the next step is to find out the reason for their dissatisfaction with your company through a questionnaire passed on to a customer or it would be better with an interview directly with the customer. Normally detractors occur when there is a gap between service and expectations. 

Gaining new customers can be done by identifying promoters. It is an advantage to your business as they can act as brand ambassadors for your company. You can request them politely for a testimonial about a product, support, and a case study on how your product solved their problem with a return of any discount or gifts from you. People believe in word of mouth as they can also help you in referring new customers to your brand. 


Using the NPS score you can understand your organization’s progress and perceptions of customers related to product/service. NPS score is a very broad metrics as it doesn’t reveal directly customer’s likes and dislikes. Getting inputs from the NPS survey prioritizing the issue and finding appropriate recommendations or solutions would improve customer loyalty.

NPS score could help you to predict when a customer would cancel your service. With the NPS score, the company can concentrate on Detractors who are likely to be at risk of churn. Strategies can be built to prevent churn

NPS score being the core metrics of Customer experience, checking with them periodically to understand loyalty towards your product/service. A loyal customer would become an evangelist of your brand. The organization should work on moving the passive customer towards promoters, which would improve your overall score which should be the wildly important goal to improve customer relationships and increase your company’s revenue. Customer success software would empower your business to measure and monitor your NPS score and track the customer journey. 

Get a direct assistance on how we can help you to enhance customer experience through advocacy.


We, Cordlogue,  a team of young minded professionals aspired to support a group of community whose only objective is Customer Success. We understood retaining a customer takes more effort than closing a deal. The realization led us to the development of Cordlogue, a customer success company founded in the year 2020.



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