Net Promoter Score (NPS) is the metric that claims to predict business growth with a single question.
Ask customers: "On a scale of 0-10, how likely are you to recommend us to a friend?" Their answer determines your company's future.
Invented by Bain & Company, NPS has become ubiquitous—and controversial. Some founders swear it's the single most important metric. Others dismiss it as oversimplified. The truth is somewhere in between: NPS is valuable, but only if you use it correctly.
Definition
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely customers are to recommend your company, product, or service to others.
It's based on a single survey question:
"On a scale of 0-10, how likely are you to recommend [Company] to a friend or colleague?"
Customers' responses place them into three categories, and from those categories, you calculate a single number: NPS.
The Categories
Promoters (9-10) Loyal advocates who actively recommend you. They drive word-of-mouth growth, customer referrals, and positive reviews.
Passives (7-8) Satisfied but uninspired. They'll stick around but won't actively promote you. They're vulnerable to competitor offers.
Detractors (0-6) Unhappy customers who damage your reputation through negative word-of-mouth. They're likely to churn.
How to Calculate NPS
The formula is simple:
NPS = (% of Promoters) - (% of Detractors)
You ignore Passives completely.
Example: Out of 100 survey responses:
- 70 are Promoters (9-10)
- 15 are Passives (7-8)
- 15 are Detractors (0-6)
NPS = 70% - 15% = 55
NPS ranges from -100 (all Detractors) to +100 (all Promoters).
NPS Score Interpretation
| Score | Interpretation | Status | |-------|----------------|--------| | 70+ | Excellent | World-class loyalty; strong growth | | 50-70 | Very good | Strong loyalty; healthy growth | | 30-50 | Good | Adequate loyalty; vulnerable to churn | | 0-30 | Poor | Significant churn risk; weak growth | | <0 | Critical | More detractors than promoters; serious problems |
Real-world examples:
- Apple, Netflix, Amazon: 70-80 NPS
- Microsoft, Google: 60-70 NPS
- Twitter (2022): 10-20 NPS (declining)
- United Airlines: ~20 NPS (historically low)
NPS vs. CSAT vs. CES
NPS ("How likely to recommend?") predicts growth and retention.
CSAT ("Are you satisfied?") measures current satisfaction. (Usually 1-5 stars or percentage satisfied.)
CES ("How easy was it?") measures effort. (Usually 1-10 scale.)
Use all three for different insights:
- NPS → Long-term loyalty and growth
- CSAT → Current satisfaction
- CES → Friction points in product/support
Why NPS Matters
1. Predicts business growth Studies show companies with NPS 50+ grow revenue 2.5x faster than those with NPS below 0.
2. Identifies advocates and detractors NPS reveals who's likely to leave (detractors) and who's likely to refer (promoters), enabling targeted interventions.
3. Simple benchmark Unlike satisfaction metrics (which vary by company definition), NPS is standardized. You can compare your NPS to competitors and industry benchmarks.
4. Correlates with churn High NPS customers have dramatically higher retention:
- Promoters: ~90% annual retention
- Passives: ~60% annual retention
- Detractors: ~30% annual retention
5. Drives referral growth Promoters generate 90% of referral revenue. Higher NPS = more word-of-mouth growth.
How to Collect NPS
1. Timing matters Ask at the moment of truth:
- After customer success event (successful integration, major use case)
- At regular intervals (monthly, quarterly)
- Post-support interaction (after customer success conversation)
Don't ask immediately after a bad experience (too reactive); don't wait years (too disconnected).
2. Use surveys Email surveys (simplest), in-app prompts (highest response), or customer interviews (richest feedback).
3. Always ask the follow-up After rating, ask: "What's the primary reason for your score?"
The qualitative "why" is more valuable than the NPS number. It reveals what to fix or amplify.
4. Segment by customer type NPS varies by:
- Product feature (which features drive higher NPS?)
- Customer segment (enterprise vs. SMB vs. startup)
- Cohort (newer customers vs. long-tenured)
Segment NPS to understand where loyalty is strong and weak.
Example NPS Analysis
Your SaaS product asks 100 customers:
| Response | Count | |----------|-------| | 10 (Promoter) | 40 | | 9 (Promoter) | 25 | | 8 (Passive) | 20 | | 7 (Passive) | 8 | | 6 (Detractor) | 5 | | 5 (Detractor) | 2 | | Total | 100 |
Calculation:
- Promoters (9-10): 65 customers = 65%
- Detractors (0-6): 7 customers = 7%
- NPS = 65 - 7 = 58
Insight: NPS of 58 is "very good"—you have strong loyalty and good growth potential. But 7% detractors represent churn risk; investigate why they're unhappy.
Common Mistakes
1. Ignoring the "why" NPS is just a number without context. Always ask follow-up questions. Detractors' feedback reveals your biggest problems.
2. Comparing to wrong benchmarks NPS varies dramatically by industry. A 35 NPS is terrible for software but healthy for airlines or banks.
3. Acting on individual scores Don't interview one detractor and rebuild your product around their feedback. Themes matter, not individual responses.
4. Ignoring passives Passives are vulnerable. Many companies focus on detractors while passives quietly churn to competitors.
5. Measuring without action NPS is only valuable if you act on feedback. Collect data, analyze themes, prioritize fixes, measure again. If you're just collecting data, you're wasting resources.
6. Not controlling for response bias Happy customers are more likely to respond to surveys. Your NPS might be inflated. Weight responses to account for non-response bias.
How to Improve NPS
1. Identify your detractors' main complaint What's the #1 reason people give low scores? Fix that.
2. Invest in customer success Customers with strong success outcomes have higher NPS. Onboarding, training, and support drive loyalty.
3. Simplify your product Complexity drives low NPS. Strip away features that don't drive value; focus on core use cases.
4. Build community For B2B and B2C products, community and peer connections drive NPS. Events, forums, and user groups help.
5. Engage passives Passives are the easiest to move. Target them with feature education, success stories, and relationship-building.
Related Metrics
- Customer Satisfaction (CSAT) — Current satisfaction with product or service
- Customer Effort Score (CES) — How easy customers find interacting with you
- Customer Lifetime Value — Total revenue expected from a customer
- Churn Rate — Percentage of customers who leave each period