What is Net Promoter Score and how is it calculated? Include NPS scores from top technology companies.

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Net Promoter Score (NPS) is a widely used metric for measuring customer loyalty and satisfaction. It is calculated based on a single survey question that asks customers how likely they are to recommend a company, product or service to others on a scale of 0 to 10.

How NPS is Calculated

Respondents are grouped into three categories based on their rating:
  • Promoters (9-10 rating): Loyal and enthusiastic customers who will keep buying and refer others.
  • Passives (7-8 rating): Satisfied but unenthusiastic customers who are vulnerable to competitors.
  • Detractors (0-6 rating): Unhappy customers who may impede growth through negative word-of-mouth.
The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. NPS = % Promoters - % Detractors The score can range from -100 (if every customer is a Detractor) to +100 (if every customer is a Promoter). A positive NPS (>0) is generally considered good, with scores above 50 being excellent.

NPS Scores for Top Technology Companies

Here are some of the highest reported NPS scores for leading technology companies:
  • Nutanix: 92
  • Zoom: 72
  • Netflix: 67
  • Apple: 61
  • Google: 58
  • SAP: 19 (in 2016, aiming for 35-40 by 2020)
The technology industry tends to have higher average NPS scores compared to other industries, with an average of around 60 according to some research . However, NPS can vary significantly by company, product/service, and over time as customer sentiments change. It's important to benchmark your NPS not just against competitors but also track your own score periodically and strive for continuous improvement in delivering exceptional customer experiences.
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