What is NPS and how to use it correctly?

Besides the 'normal' rating, you can also ask for a NPS. 

What does NPS mean?

NPS means Net Promoter Score. This score measures candidate, client, employee and/or supplier experience and predicts your business growth. 

How to correctly ask for NPS?

It is very important to use the right way of questioning your NPS. Make sure you use the following aspects:

1. One of the four key questions: 

• "How likely is it that you would recommend Ratecard to a friend or colleague?"
• "Would you work with and/or for Ratecard again?"
• "How likely is it that you would recommend Ratecard as a place to work?"
• "How likely would you be to recommend Ratecard's products or services to a friend or colleague?"

2. The right scale: 0-10 (instead of 1-10)

The NPS calculation

The NPS is calculated by dividing all reviewers into 3 groups: 

• Promoters (score 9-10) are very positive and therefore loyal to your organization. They will recommend you to others, which will cause growth.
• Passives (score 7-8) are satisfied customers, who are not specifically loyal to your company and won't necessarily recommend you to others. 
• Detractors (score 0-6) are unsatisfied customers, who can damage your organization by spreading negative words about you.

In order to calculate the NPS, you detract the percentage of Detractors from the percentage of Promoters. This means that your NPS is always between -100 and +100: only if every single reviewer has rated your organization with a 9 or 10, your NPS is 100. If every reviewer rated your company with a 6 or lower, your NPS will be -100.

Calculation example

If 10% of the reviewers rated your company with a 6 or lower, 65% gave you a 7 or 8 and the other 25% rated you with a 9 or 10, your NPS will be:
25% (promoters) - 10% (detractors) = +15

Ask for NPS via Ratecard: standard vs. custom

NPS Standard

If you choose the building block NPS (standard), you automatically measure the NPS according to the official rules. That means you can only choose specific questions and the 0-10 scale. This way, you will definitely be able to calculate the official NPS.

The NPS is measured on the level of either the company or employee.

NPS Custom

Another option is to create a custom NPS question. An important note here, is that you need to use the aspects that are priorly stated, in order to reach an official Net Promoter Score. If you choose the wrong scale or question, it is impossible to calculate your NPS.

Underneath is an example of a scale that is used in the wrong way when asking for NPS. The 1-10 scale is incorrect, it should be 0-10 if you want to be able to calculate the official NPS:

The following is an example of a request for NPS in the correct way, with the right scale from 0-10:

NPS is a great way to measure candidate, client, employee and/or supplier experience an serves as an indication for growth, so make sure you ask your reviewers the correct way when creating a form!