Net Promoter Score (NPS)
A customer loyalty metric measuring likelihood of customers to recommend your product, calculated from a 0-10 rating scale.
What is Net Promoter Score?
Net Promoter Score (NPS) measures customer loyalty and satisfaction by asking one question: 'How likely are you to recommend [product/company] to a friend or colleague?' on a 0-10 scale. Respondents are categorized as Promoters (9-10: loyal enthusiasts), Passives (7-8: satisfied but unenthusiastic), or Detractors (0-6: unhappy customers). NPS is calculated as: % Promoters - % Detractors. Scores range from -100 (all detractors) to +100 (all promoters). NPS surveys typically include follow-up open-ended questions asking 'Why?'
Why It Matters
NPS correlates strongly with growth, retention, and customer lifetime value. Promoters drive growth through referrals, purchase more, and churn less. Detractors damage brand through negative word-of-mouth and eventually churn. NPS provides a simple, standardized metric for tracking customer sentiment over time, comparing against competitors (when benchmark data available), and identifying which customer segments or product areas need improvement. The follow-up 'Why?' question provides qualitative context for the score.
How to Use NPS Effectively
Survey customers at meaningful moments: post-onboarding, after support interactions, quarterly for ongoing customers, post-renewal decision. Keep surveys short (NPS question + 1-2 follow-ups). Close the loop on feedback—especially with detractors—within 24-48 hours. Analyze qualitative responses to identify themes. Segment NPS by customer attributes (plan type, industry, tenure) to identify which segments are most/least satisfied. Track NPS trends over time rather than obsessing over absolute scores (industry benchmarks vary widely). Most importantly, act on feedback—identify root causes of detractor responses and implement fixes. Measure whether actions improve NPS.
Concrete Examples
A SaaS company sends NPS surveys 30 days post-signup. They discover customers rating them 6 or below cite 'difficult setup' and 'poor onboarding.' They overhaul onboarding with interactive walkthroughs and see NPS increase from 28 to 47 over two quarters. A B2B vendor segments NPS by industry and discovers healthcare customers score 20 points lower than other verticals—investigation reveals HIPAA compliance concerns. They create healthcare-specific compliance documentation and achieve NPS parity. An e-commerce platform tracks NPS after delivery—customers rating 9-10 become brand advocates targeted with referral incentives, generating 15% of new customers.
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