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What is NPS and why is it the most important KPI for customer satisfaction?

7 min read

Net Promoter Score is the most widely used KPI for customer satisfaction globally. But what exactly does it measure, how do you calculate it and when is an NPS score good? This article gives a complete overview.

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What is Net Promoter Score?

NPS is the fastest way to measure whether customers recommend your business. One question, one number, direct action. Companies with a high NPS grow on average twice as fast as competitors.

Net Promoter Score (NPS) is a method for measuring customer loyalty. At its core is one question: 'How likely are you to recommend us to a friend or colleague?' Respondents give a score from 0 to 10.

Based on that score, customers are grouped into three categories: Promoters (9-10), Passives (7-8) and Detractors (0-6). NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.

How do you calculate NPS?

The calculation is simple: NPS = % Promoters minus % Detractors. Passives are not included in the calculation but do affect the overall percentages.

Example: of 100 respondents, 60 are Promoters, 25 Passives and 15 Detractors. NPS = 60% minus 15% = +45.

NPS can range from minus 100 (everyone is a Detractor) to +100 (everyone is a Promoter). A score above 0 is positive; above +50 is considered excellent.

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What is a good NPS score?

What counts as 'good' varies by sector. In B2B services +30 is average, in e-commerce the benchmark is around +45. Recruitment and HR services typically sit between +20 and +40.

More important than the absolute score is the trend: if your NPS rises over time, you are improving the customer experience. If it falls, there is a structural issue that needs attention.

Transactional vs relational NPS

Transactional NPS delivers the most useful data. By measuring right after a specific moment you know exactly which step in the customer journey needs improvement.

There are two types. Relational NPS measures overall loyalty, independent of a specific interaction. You run it periodically, for example every quarter.

Transactional NPS measures satisfaction right after a specific touchpoint: after a purchase, after a customer call or after a delivery. This type gives more actionable insights because you know exactly which moment influenced the score.

Measuring NPS: a practical approach

Choose the right moment. In e-commerce: after delivery. In recruitment: after placement. In services: after a consultation or project completion.

Send the survey by email or SMS, with a maximum of 2-3 questions. The NPS question plus one open follow-up ('What is the main reason for your score?') yields the most useful data.

Automate sending so every customer receives an invitation at the right time. Manual sending leads to inconsistent data and low response rates.

From NPS to action

An NPS score without follow-up has no value. Set up internal alerts for Detractors: a low score should lead to a response from the responsible person within 24 hours.

Promoters are an opportunity. Activate them for a review, recommendation or referral. Customers who give a 9 or 10 are willing to do this if you ask at the right time.

Analyse open answers by segment. Are there patterns in the criticism? Specific products, people or processes that consistently score lower? Those are your improvement priorities.

Frequently asked questions

How often should you measure NPS?

Relational NPS is typically measured every quarter or half year. Transactional NPS is measured continuously, right after each relevant touchpoint. The more data points, the more reliable the trend.

What is the difference between NPS and CSAT?

CSAT (Customer Satisfaction Score) measures satisfaction with a specific interaction. NPS measures loyalty and willingness to recommend. NPS is a better predictor of long-term growth.

How many respondents do you need for a reliable NPS?

For statistical reliability you need at least 30-50 respondents per segment. With smaller numbers, trends are less reliable but individual scores are still useful for direct follow-up.

Can I automate NPS?

Yes. With Feedback Analytics you connect NPS surveys to your CRM, ATS or webshop. Surveys are sent automatically after the right touchpoint, without manual intervention.

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