NPS (Net Promoter Score)

Quick Definition

A customer loyalty metric measuring willingness to recommend, calculated as the percentage of promoters minus detractors.

What is NPS?

Net Promoter Score measures customer loyalty by asking one question: "How likely are you to recommend us to a friend or colleague?" Respondents rate 0-10 and are grouped into Promoters (9-10), Passives (7-8), and Detractors (0-6).

NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Scores range from -100 (everyone's a detractor) to +100 (everyone's a promoter).

Why NPS Matters

NPS correlates with growth. Promoters refer new customers, renew at higher rates, and expand their accounts. Detractors churn, demand support resources, and damage your reputation.

The score itself matters less than the trend and the feedback. Follow up with detractors to understand their pain. Double down on what promoters love.

NPS Benchmarks

• Below 0: Critical problems. More detractors than promoters.
• 0-30: Room for improvement. Average for most industries.
• 30-70: Good. Strong customer satisfaction.
• Above 70: Excellent. World-class customer loyalty.

Formula

NPS = % Promoters - % Detractors

• Promoters: Score 9-10
• Passives: Score 7-8 (ignored in calculation)
• Detractors: Score 0-6

Range: -100 to +100

Example

Survey results from 200 customers:

• Promoters (9-10): 100 customers (50%)
• Passives (7-8): 60 customers (30%)
• Detractors (0-6): 40 customers (20%)

NPS = 50% - 20% = +30

Solid score. You have more advocates than critics. Focus on converting passives to promoters.

Related Terms

Customer Health Score
A composite metric combining usage, engagement, and sentiment signals to predict customer renewal likelihood.
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Churn Rate
The percentage of customers or revenue lost over a specific period, measuring how quickly you're losing business.
Learn more

LTV (Lifetime Value)
The total revenue a business expects to earn from a customer over the entire duration of their relationship.
Learn more

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