How is the Net Promoter Score (NPS) calculated?

The Net Promoter Score (NPS) is calculated primarily by categorizing customer feedback based on responses given on a 0 to 10 scale. Customers are asked to rate how likely they are to recommend a company's product or service to others, with a score ranging from 0 (not at all likely) to 10 (extremely likely). Based on their ratings, customers are grouped into three categories: promoters (scores of 9-10), passives (scores of 7-8), and detractors (scores of 0-6).

The NPS is then computed by subtracting the percentage of detractors from the percentage of promoters. This scoring method allows businesses to gauge customer loyalty and satisfaction effectively, providing valuable insights into customer opinion and potential brand advocacy.

The other options, while related to customer feedback and business performance, do not accurately describe how NPS is specifically calculated. For example, simply asking customers about their likelihood to buy does not categorize them into the three groups required for NPS calculation. Tracking sales or assessing complaint frequency does not directly measure customer loyalty in the way NPS does, which focuses explicitly on recommendations.