NPS (Net Promoter Score)
NPS (Net Promoter Score) is a standardized metric that measures customer loyalty by asking a single question: 'How likely are you to recommend this product to a colleague?' on a 0-10 scale; Respondents are segmented: 9-10 are Promoters, 7-8 are Passives, and 0-6 are Detractors; NPS is most useful when tracked over time and segmented by cohort, plan tier, or feature adoption rather than as a single company-wide number
NPS (Net Promoter Score) is a standardized metric that measures customer loyalty by asking a single question: ‘How likely are you to recommend this product to a colleague?’ on a 0-10 scale. The resulting score ranges from -100 to +100.
How it works
Respondents are segmented: 9-10 are Promoters, 7-8 are Passives, and 0-6 are Detractors. NPS equals the percentage of Promoters minus the percentage of Detractors. Scores above 50 are considered excellent in software; scores above 70 are exceptional. The follow-up qualitative question (‘Why did you give that score?’) provides more actionable insight than the score itself.
Key facts
- Score range: -100 to +100; positive NPS means more promoters than detractors
- Transactional vs. relational NPS: Transactional NPS is triggered by a specific event; relational NPS surveys the overall relationship
- Limitations: NPS is a lagging indicator and varies significantly by survey methodology and delivery timing
For builders
NPS is most useful when tracked over time and segmented by cohort, plan tier, or feature adoption rather than as a single company-wide number. Closing the loop with Detractors by reaching out within 48 hours is one of the highest-ROI customer retention activities.
Sources
- Bessemer Venture Partners. State of the Cloud annual report. bvp.com
- SaaStr. SaaS benchmarks and metrics archive. saastr.com
- Bain & Company. The Net Promoter System. bain.com
- KPMG. Private SaaS Company Survey. kpmg.com
- ChartMogul. SaaS metrics benchmarks and definitions. chartmogul.com
