Understanding the Net Promoter Score: Definition and Calculation Guide

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Customer Satisfaction - NPS
Customer Satisfaction - NPS

Net Promoter Score: Why ‘Vote 10’ Damages Customer Feedback Integrity and Service Improvement

A Sign That Missed the Point

A few days ago, I noticed a sign at a car dealership that explicitly requested customers to rate their service experience a perfect 10 on their satisfaction survey. (For privacy, I’ve replaced the dealership’s name with the fictional ABC Motors.) The sign translated from Italian read:

“Complete the satisfaction survey for our service department and let ABC Motors know you are satisfied. Vote 10. Your 10s are our pride and give us the motivation to offer ever greater competence and quality.”

While appearing enthusiastic and harmless, this request fundamentally misunderstands the real purpose of customer feedback and the principles behind the Net Promoter Score (NPS). The NPS calculation depends on honest survey responses to accurately measure the proportion of satisfied customers, and manipulating these responses undermines the value of the metric.

Understanding Net Promoter Score (NPS)

The Net Promoter Score (NPS) has become a cornerstone for companies aiming to measure customer loyalty and customer satisfaction. At its core, NPS is a straightforward metric that helps businesses gauge how likely their customers are to recommend their products or services to others—a powerful indicator of both customer sentiment and future business growth.

To calculate your NPS score, you simply subtract the percentage of detractors (unhappy customers) from the percentage of promoters (loyal customers who are enthusiastic about your brand). For example, if 60% of your survey respondents are promoters and 20% are detractors, your NPS score would be 40. This single number provides a clear snapshot of your customer base’s loyalty and satisfaction, making it easier to track changes over time and identify trends in customer experience.

However, understanding your NPS score in isolation isn’t enough. Industry norms play a crucial role in interpreting your results. For instance, the average NPS for internet service providers is often negative, around -10, while department stores may see averages closer to 50. Comparing your NPS to the industry average helps you understand where you stand and what a good NPS score looks like for your sector.

The Net Promoter System (NPS) goes beyond just the score. It incorporates follow-up questions and open-ended feedback, enabling companies to dig deeper into the reasons behind their scores. This approach transforms NPS from a simple metric into a comprehensive customer experience tool, providing actionable insights that drive continuous improvement. By listening to customer feedback and acting on it, businesses can enhance customer loyalty, address customer issues, and foster more promoters within their customer base.

NPS is also a reliable predictor of business growth. Companies with high NPS scores typically enjoy more repeat purchases, positive word-of-mouth, and stronger customer relationships. On the other hand, a low NPS can signal underlying problems that may lead to customer churn and negative word-of-mouth, making it essential to measure net promoter score regularly and respond proactively.

While NPS is a great starting point for measuring customer satisfaction, it’s most effective when used alongside other customer experience metrics like Customer Satisfaction Score (CSAT) and Customer Effort Score (CES). Combining these metrics gives you a more complete view of your customer’s journey, helping you identify pain points, measure customer satisfaction at different touchpoints, and prioritise improvements that matter most to your customers.

Ultimately, leveraging NPS data and the broader Net Promoter System enables companies to make informed, data-driven decisions that improve the customer experience, build loyal customers, and drive sustainable business growth. By focusing on authentic customer feedback and benchmarking against industry norms, you can set realistic goals, improve NPS, and create a culture of continuous improvement that benefits both your customers and your company’s growth.

The Problem with Requesting a “10” in Net Promoter Score (NPS)

The Net Promoter Score is a simple yet powerful tool to measure customer loyalty. It asks one critical question:

“On a scale of 0–10, how likely are you to recommend our service to a friend or colleague?”

Responses categorise customers as:

  • Promoters (9–10): Highly satisfied, actively recommend your services.
  • Passives (7–8): Passive customers who are generally satisfied but not enthusiastic—sometimes referred to as unenthusiastic customers. They are vulnerable to switching to competitors.
  • Detractors (0–6): Dissatisfied, may discourage others from choosing your service.

How respondents answer the NPS question determines their categorisation as promoters, passive customers, or detractors, and directly impacts the overall score.

When a company explicitly asks for top scores, it introduces bias, undermining the authenticity and accuracy of the feedback received.

 

NPS Calculation Approach
NPS Calculation Approach

The Real Cost of Biased Feedback

Misleading Data: Artificially high scores create an illusion of excellence, hiding genuine service issues.

Overlooked Improvement Opportunities: Authentic feedback identifies problems early. Without honest responses, minor issues grow into significant challenges. Conducting root cause analysis of authentic feedback enables organizations to uncover and address the underlying issues that drive customer dissatisfaction.

Loss of Customer Trust: Customers notice when their genuine opinions aren’t welcome, eroding trust and damaging long-term loyalty.

Lean Thinking: Listen Authentically

Real‑World Examples of Biased Surveys Gone Wrong

Case 1 – The Retail Chain with Vanishing Loyalty

In 2018, a European electronics retailer linked store manager bonuses to NPS. Managers began handing tablets to customers, politely asking for “a small favour—please hit 10 so we can keep improving.” The chain’s NPS stayed above +70 for two years… until sales fell 12 %. An internal audit showed actual (unprompted) NPS was +18. Recovery required retraining 400 staff and revamping the feedback programme.

Case 2 – Automotive Dealership Turnaround

A regional dealer network noticed warranty‑repair customers gave many 10s but online reviews were mediocre. They realised service advisors were requesting perfect scores in person. After removing prompts and introducing coach‑back calls to detractors, true NPS dipped to +32, but year‑on‑year repeat‑service revenue rose 15 % thanks to targeted improvements.

Lean Feedback Is a Competitive Advantage for Customer Loyalty

Lean Thinking places the customer’s perspective at the centre of every decision:

Value is always defined by the customer.

Coaching customers to provide inflated scores silences the most crucial voice for improvement. Without genuine customer input, organisations lose sight of real opportunities for eliminating waste and improving service quality. Gathering customer insights from authentic feedback enables organisations to better understand customer needs and prioritise meaningful improvements.

Five Practical Ways to Encourage Authentic Feedback

  1. Ask Clearly and Neutrally: Use the original NPS survey question—”How likely are you to recommend us to a friend or colleague?”—to collect unbiased feedback.
  2. Respond Promptly and Openly: Quickly address concerns to build genuine customer trust.
  3. Use Clear, Visual Feedback Dashboards: Transparent communication ensures everyone in the organisation understands customer sentiment in real-time.
  4. Reward Problem-Solving, Not High Scores: Encourage teams to identify and address underlying issues rather than aiming solely for high ratings.
  5. Build Continuous Improvement Practices: Conduct regular NPS surveys and systematically analyse NPS feedback to drive ongoing improvements in your processes.

Final Thought: Earn the 10—Don’t Request It

Genuine excellence is achieved when customers willingly provide high scores without prompting. Organisations that listen honestly and respond actively to customer feedback naturally build trust, loyalty, and sustained competitive advantage. By focusing on the customer journey and engaging existing customers through NPS initiatives, businesses can directly contribute to a company’s growth by fostering loyalty, increasing referrals, and enhancing overall customer satisfaction.

Ready to enhance your customer feedback and Lean practices? Contact the Leanscape team today to schedule your complimentary assessment.

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