Net Promoter Score (NPS)
NPS is a simple question: 'On a scale of 0–10, how likely are you to recommend us to a friend?' People who score 9–10 are promoters; 7–8 are passive; 0–6 are detractors. Subtract detractors from promoters and you get NPS. High NPS means customers love you.
Net Promoter Score (NPS) is a customer loyalty metric developed by Fred Reichheld and Bain & Company in 2003. It measures the likelihood that customers will recommend a company to others — a proxy for customer loyalty and satisfaction.
Calculation:Ask customers "How likely are you to recommend [Company] to a friend or colleague?" on a 0–10 scale. Categorize responses: - (9–10): Loyal customers likely to drive referrals - (7–8): Satisfied but unenthusiastic; vulnerable to competitive offers - (0–6): Unhappy customers who may damage the brand through negative word-of-mouth
NPS = % Promoters − % Detractors. Ranges from -100 to +100.
Benchmarks by category:B2B SaaS typically sees NPS of 30–50 for strong products; consumer apps aim for 40–70. Scores above 70 are exceptional. NPS below 0 indicates significant product experience problems.
Limitations:NPS is a lagging indicator; it measures current satisfaction, not future behavior. NPS can vary significantly based on survey timing, customer segment, and question framing. Use it as one signal among many, not as the sole measure of customer health.
Key Takeaways
- NPS = % Promoters (9-10) minus % Detractors (0-6), ranging from -100 to +100
- NPS is most valuable as a trend over time and compared within segments, not as an absolute number
- Always follow up NPS scores with open-ended 'why' questions — the verbatims explain the number
- B2B SaaS NPS above 40 is generally considered healthy; above 60 is exceptional
Common Questions
How often should I survey customers for NPS?
For transactional NPS (post-interaction), survey immediately after each touchpoint. For relationship NPS (overall satisfaction), quarterly is typical. Avoid surveying the same customer more than once per quarter to prevent survey fatigue.
What's a good NPS response rate?
Email NPS surveys typically get 15–30% response rates. In-app surveys can get 40–60%. Response rate matters — low response rates can skew NPS toward the most satisfied or most dissatisfied customers.