Understanding and Calculating Net Promoter Score (NPS) Using PowerBI

THE Net Promoter Score (NPS) is an essential tool in the field of marketing and business administration. This method allows you to analyze the customer experience and their propensity to recommend your services or products. Based on a series of scores assigned by the customer, the NPS offers a precise vision of customer satisfaction by distinguishing between detractor, passive and promoter customers. To calculate this score, there are powerful tools such as PowerBI, which simplify the process and offer convenient visualization of the results. Let’s dissect this method together.

What is Net Promoter Score (NPS)?

NPS is a key performance indicator (KPI) developed to assess the customer loyalty to a company. It is based on a simple question: on a scale of 0 to 10, how much would you recommend our company/product/service to a friend or colleague?

The responses make it possible to categorize customers into three groups:

  1. THE promoters (score of 9 to 10) are loyal customers who will continue to buy and promote the company to those around them.
  2. THE passive (score of 7 to 8) are satisfied customers who can be influenced by competing offers.
  3. THE critics (score 0 to 6) are dissatisfied customers who can harm the brand through negative word of mouth.

How to Calculate NPS with PowerBI?

To calculate NPS using PowerBI, you can rely on Power Query or use DAX metrics. Let’s take a closer look at these two approaches.

Using Power Query

Let’s say you have a file that counts notes by type. For example, you have 9879 one-star ratings for the Shazam app on Android OS and 10241 4-star ratings for the same app. Your first task is to calculate the total number of customer ratings.

Then, you will calculate the proportion of promoter customers (those who gave 5 stars) and detractor customers (those who gave 1, 2 or 3 stars). The NPS is then obtained by subtracting the proportion of detractor customers from that of promoters.

Using DAX Measurements

If your data structure is different, for example if it contains survey responses, you can calculate NPS using DAX metrics.

To do this, create a column that identifies, based on the rating given, whether the customer is a promoter, passive or detractor. Next, create a DAX metric called NPS that calculates the difference between the proportion of customers who are promoters and detractors, and multiplies that value by 100.

How to Visualize NPS in PowerBI?

PowerBI offers several types of visuals to represent NPS. The main one is the gauge, which should be set for a minimum of -100 and a maximum of 100.

Another option is the stacked bar chart. This type of chart returns the proportion of each rating type for each customer category. This is a great way to visualize the balance between detractor, passive and promoter customers.

THE Net Promoter Score is a valuable indicator for assessing the satisfaction of your customers and their propensity to recommend your services. Using PowerBI, you can easily calculate and visualize this metric, allowing you to identify areas for improvement and make informed decisions to increase your customer satisfaction. It’s not just about numbers, it’s about the growth and success of your business. So, are you ready to harness the full potential of NPS with PowerBI?