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Understanding the Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a key metric that measures customer loyalty and satisfaction.

Melissa Khattar avatar
Written by Melissa Khattar
Updated over a week ago

How It Works

Localyser’s NPS is calculated based on customer star ratings across all review platforms. Customers are categorized into three groups:

Category

Star Rating

Description

🟢 Promoters

⭐⭐⭐⭐⭐ (5)

Loyal and enthusiastic customers who actively recommend your business.

🟡 Passives

⭐⭐⭐ or ⭐⭐⭐⭐ (3-4)

Satisfied but not highly engaged; they may switch to competitors.

🔴 Detractors

⭐ or ⭐⭐ (1-2)

Unhappy customers who may leave negative feedback and discourage others.

How NPS is Calculated

Your NPS is determined using this formula:

NPS=%Promoters−%Detractors

Example Calculation:

  • 40% of customers are Promoters

  • 20% of customers are Passives

  • 40% of customers are Detractors

NPS=40%−40%=0

(ℹ️ Click the tooltip icon next to the title to see the formula in Localyser)

Interpreting Your Score

NPS Score

Color Code

Interpretation

🔴 Below 0 (Negative NPS)

Red

Indicates low customer satisfaction and a high risk of churn. Contact our [Customer Success Team] for strategies to improve your rating.

🟠 1 - 49

Orange

A mixed sentiment with room for improvement. Use the [Feedback Tool] to generate more positive reviews and stay engaged with customers.

🟢 50 and above

Green

Strong customer loyalty. Focus on maintaining and improving customer relationships.

Viewing Your NPS in Localyser

Localyser automatically collects customer reviews from various platforms and calculates your NPS. This is displayed in your dashboard along with key insights:

1. Current NPS Score

Your overall customer satisfaction rating based on recent reviews.

2. Performance Alerts

Localized messages are displayed below your NPS score:

Message

Trigger Condition

Description

🟢 "Your Net Promoter Score has increased!"

When there is a positive percentage change in the last 30 days.

This reflects growing customer satisfaction.

🔴 "Your Net Promoter Score has decreased!"

When NPS drops compared to the last 30 days.

Time to analyze feedback and identify improvement areas.

🟡 "Your Net Promoter Score remains the same."

No change in NPS over the past 30 days.

While stability is good, consider ways to further enhance customer experience.


Additional Insights in Your Dashboard

🔵 Industry Average NPS – Compare your performance with competitors in your sector.
🔵 Promoter, Passive, Detractor Breakdown – Understand your customer segments.
🔵 Trend Chart – Track NPS changes over time for deeper analysis.

Monitoring your NPS regularly and acting on customer feedback can significantly improve brand loyalty and customer satisfaction, ultimately driving business growth


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