Understanding NPS Calculation at the Chain or Group Level
When evaluating the Net Promoter Score (NPS) across a hotel chain or group, it's crucial to comprehend the calculation methodology to ensure accurate insights.
Methodology: Weighted Average of Individual Responses
At our organization, we calculate the overall NPS by averaging all individual guest responses, assigning equal weight to each guest's score. This approach contrasts with averaging the NPS scores of each hotel within the group, which could skew results due to varying response volumes.
Why This Method Matters
By aggregating individual responses before calculating the average, we obtain a more precise and representative NPS that reflects the collective guest experience across all properties. This method ensures that each guest's feedback contributes equally, providing a fair and comprehensive overview of guest sentiment.
Visual Representation: NPS Calculation Methodology
To further illustrate this concept, consider the following example:
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Individual Guest Responses:
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Hotel A: 100 responses
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Hotel B: 50 responses
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Hotel C: 150 responses
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NPS Scores:
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Hotel A: 40
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Hotel B: 60
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Hotel C: 50
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Traditional Method (Averaging Hotel Scores):
(40 + 60 + 50) / 3 = 50 NPS
Weighted Average Method (Averaging Individual Responses):
(100 × 40 + 50 × 60 + 150 × 50) / (100 + 50 + 150) = 49.5 NPS
This example demonstrates how the weighted average method provides a more accurate representation of the overall guest experience.
Conclusion
Understanding the NPS calculation methodology is vital for accurately assessing guest satisfaction at the chain or group level. By using the weighted average of individual responses, we ensure that each guest's feedback is fairly represented, leading to more reliable insights and informed decision-making.