Understanding and Calculating Net Promoter Score (NPS) with PowerBI

The Net Promoter Score (NPS) is an essential tool in marketing and sales administration. This modality enables 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, distinguishing between detractors, passives and promoters. To calculate this score, there are powerful tools such as PowerBI, which simplify the process and provide a practical visualization of the results. Let's take a closer look at this method.

What is the Net Promoter Score (NPS)?

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

The responses allow us 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 their friends and family.
  2. The liabilities (score of 7 to 8) are satisfied customers who may be influenced by competing offers.
  3. The detractors (score from 0 to 6) are dissatisfied customers who can damage the brand through negative word-of-mouth.

How do I calculate NPS with PowerBI?

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

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Using Power Query

Suppose you have a file that counts notes by type. For example, you have 9879 one-star ratings for the Shazam application on the Android OS and 10241 4-star ratings for the same application. Your first task is to calculate the total number of ratings given by customers.

Next, you'll calculate the proportion of promoter customers (those who awarded 5 stars) and detractor customers (those who awarded 1, 2 or 3 stars). The NPS is then obtained by subtracting the proportion of detractors 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 measures.

To do this, create a column that identifies, on the basis of the score given, whether the customer is a promoter, a liability or a detractor. Next, create a DAX measure called NPS, which calculates the difference between the proportion of promoter customers and detractor customers, and multiplies this value by 100.

How do I view the NPS in PowerBI?

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

Another option is the stacked bar graph. This type of chart returns the proportion of each rating type for each customer category. It's an excellent way of visualizing the balance between detractors, passives and promoters.

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

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