NPS Confidence Intervals and Sig Test
Originally published: 27/01/2021 09:10
Publication number: ELQ-32180-1
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NPS Confidence Intervals and Sig Test

NPS Confidence Intervals and Sig test with finite population correction adjustment feature

NPS is based on this question: “How likely is it that you would recommend our company/product/service to a friend or colleague?”. The rating scale is from 0 - extremely unlikely to 10 - extremely likely that allows companies to classify the customers as “promoters”, “passives” or “detractors”.

The promoters: a score of 9 or 10. The promoters are the most loyal and satisfied customers. Not only will they recommend the brand to other potential buyers such as their family, friends or others in their community, but they will also repurchase if possible.

The passives: a score of 7 or 8. They are satisfied customers but not as enthusiastic as the promoters. They won’t speak ill of nor promote the brand for free to those around them. They might switch to the competitors.

The detractors: a score between 0 and 6. They are usually dissatisfied by past experience with the brand. If leaving them alone, they would publish negative reviews and drive prospects away.

How is the NPS calculated?

Very easy: it is the percentage of promoters and subtract the percentage of detractors. For example, if you have 45% Promoters, 40% Passives and 15% Detractors, your NPS will be 45 - 15 = 30.

This Best Practice includes
1 Excel with two tabs: Pair-wise sig test and Confidence Intervals

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