What is NPS (Net Promoter Score)?
A customer loyalty metric measuring how likely customers are to recommend your product on a scale of 0-10. Score = % Promoters - % Detractors.
Quick Definition
NPS (Net Promoter Score): A customer loyalty metric measuring how likely customers are to recommend your product on a scale of 0-10. Score = % Promoters - % Detractors.
Understanding NPS (Net Promoter Score)
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend your product or service to others. It's based on a single question: "On a scale of 0-10, how likely are you to recommend [company/product] to a friend or colleague?" Responses categorize customers as Promoters (9-10), Passives (7-8), or Detractors (0-6).
NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The score ranges from -100 (all Detractors) to +100 (all Promoters). For example, if 60% of respondents are Promoters and 20% are Detractors, your NPS is 40.
NPS has become popular because it's simple to implement, easy to benchmark, and correlates with business growth. Companies with higher NPS tend to see stronger revenue growth, higher retention, and more referrals. However, NPS is most valuable when combined with follow-up questions that explain why customers gave their score, enabling actionable improvements.
Key Points About NPS (Net Promoter Score)
NPS measures customer willingness to recommend your product
Scores range from -100 to +100; above 0 is positive, above 50 is excellent
Promoters (9-10), Passives (7-8), and Detractors (0-6) are the categories
Follow-up questions reveal the 'why' behind scores
NPS correlates with retention, growth, and customer lifetime value
How to Use NPS (Net Promoter Score) in Your Business
Survey at the Right Moments
Send NPS surveys at meaningful touchpoints: after onboarding, after support interactions, at regular intervals (quarterly), or after key milestones. Avoid survey fatigue by not over-surveying. Choose moments when customers can meaningfully evaluate their experience.
Include Follow-Up Questions
The score alone isn't actionable. Always ask 'What's the primary reason for your score?' This qualitative feedback reveals what's driving satisfaction or dissatisfaction. Without it, you have a number but no direction for improvement.
Close the Loop
Act on feedback, especially from Detractors. Reach out to understand concerns and resolve issues. Thank Promoters and ask for referrals or reviews. Closing the loop improves relationships and shows customers their feedback matters.
Track Trends Over Time
A single NPS score is less valuable than trends. Track how NPS changes over time, after product releases, or following process changes. Segment by customer type to understand which groups are most or least satisfied.
Real-World Examples
B2B SaaS NPS Program
A SaaS company surveys customers quarterly. Their NPS is 42—60% Promoters, 22% Passives, 18% Detractors. Follow-up reveals Detractors cite complexity; Promoters cite time savings. The company simplifies the UI and sees NPS rise to 52 over two quarters.
Segmented NPS Analysis
Analysis reveals: Enterprise NPS = 65, Mid-market NPS = 45, SMB NPS = 25. The company investigates SMB dissatisfaction and discovers they lack adequate onboarding resources. A new SMB success program improves segment NPS to 40.
NPS-Driven Referral Program
After receiving a Promoter score, customers are automatically asked if they'd like to refer colleagues. This systematic approach generates 30% of new leads. Promoters also receive invitations to case studies and reference calls.
Best Practices
- Always ask why—the number without context isn't actionable
- Survey at consistent intervals to enable trend analysis
- Close the loop with Detractors quickly to prevent churn
- Segment NPS by customer type, tenure, and other relevant factors
- Benchmark against your industry but focus on improving your own score
- Use Promoters for referrals, reviews, and case studies
Common Mistakes to Avoid
- Collecting NPS without follow-up questions to understand why
- Not acting on feedback, making the survey feel pointless
- Over-surveying customers and causing survey fatigue
- Focusing only on the score rather than the underlying feedback
- Comparing NPS across industries with very different benchmarks
Frequently Asked Questions
What's a good NPS score?
Above 0 is positive (more Promoters than Detractors). Above 30 is good. Above 50 is excellent. Above 70 is world-class. However, scores vary significantly by industry—B2B SaaS averages around 30-40. Focus on improving your own score over time rather than hitting arbitrary benchmarks.
How often should I survey customers?
Quarterly is common for relationship NPS. You can also use transactional NPS after specific interactions (support, onboarding). Avoid surveying the same customer more than quarterly to prevent fatigue. Use sampling if you have many customers.
What do I do with Detractors?
Reach out promptly to understand their concerns. Try to resolve issues—many Detractors can become Promoters if problems are addressed well. If issues can't be resolved, document the feedback for product improvement. Detractor feedback is often your most valuable input.
Does NPS predict retention?
Generally yes—Promoters are more likely to renew and expand; Detractors are more likely to churn. However, NPS is a lagging indicator of experience, not a direct predictor. Combine NPS with behavioral data (usage, support tickets) for better churn prediction.
Is NPS actually useful?
NPS is useful as one input among many. Its value comes from simplicity, benchmarking ability, and the follow-up feedback. Critics note it's a blunt instrument that hides nuance. Use NPS alongside other metrics like CSAT, CES, retention data, and qualitative research for a complete picture.
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