NPS (Net Promoter Score)
A customer satisfaction metric that measures how likely customers are to recommend your product to others, scored from -100 to +100. Calculated by subtracting the percentage of detractors (0-6 rating) from the percentage of promoters (9-10 rating). NPS is a leading indicator of retention, expansion, and referral potential.
Net Promoter Score (NPS) is a customer satisfaction metric that measures how likely customers are to recommend your product to others, on a scale from -100 to +100.
How NPS Works
Customers are asked:
"On a scale of 0-10, how likely are you to recommend [product] to a colleague?"
They are then grouped into three categories:
- Promoters (9-10): Enthusiastic advocates who actively recommend the product.
- Passives (7-8): Satisfied but not enthusiastic; vulnerable to competitive offers.
- Detractors (0-6): Unhappy customers who may churn or spread negative word-of-mouth.
NPS = % Promoters − % Detractors
What Good Looks Like
- 70+: World-class. Extremely loyal customer base.
- 50–70: Excellent. Strong customer satisfaction and advocacy.
- 30–50: Good. Solid satisfaction with room for improvement.
- 0–30: Average. Meaningful dissatisfaction present.
- Below 0: Concerning. More detractors than promoters.
Why NPS Matters
NPS is a leading indicator of:
- Retention: Promoters renew at higher rates; detractors churn more.
- Expansion: Promoters expand more frequently.
- Referrals: Promoters generate referral pipeline; detractors can damage reputation.
Detractors also tend to consume disproportionate support resources.
NPS Best Practices
- Survey at consistent intervals (e.g., quarterly or semi-annually) to track trends.
- Follow up with detractors quickly to address concerns.
- Segment NPS by customer segment, product, and CSM to identify patterns.
- Pair NPS with qualitative feedback to understand why customers scored as they did.
- Avoid gaming the score by only surveying happy customers.
RevOps Application
Revenue Operations (RevOps) integrates NPS into the broader customer health model alongside:
- Product usage data
- Support tickets
- Engagement signals
NPS trends by segment help predict churn risk and highlight expansion opportunities.