Net Promoter Score (NPS)
A customer loyalty metric that measures how likely customers are to recommend your product or service to others on a scale of 0 to 10.
Net Promoter Score (NPS) is a widely used metric that gauges customer satisfaction and loyalty by asking one simple question: "How likely are you to recommend our product to a friend or colleague?" Respondents rate on a scale of 0 to 10 and are grouped into three categories Promoters (9-10), Passives (7-8), and Detractors (0-6). NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score between -100 and +100.
NPS matters because it is a leading indicator of growth and retention. Companies with high NPS scores tend to experience stronger word-of-mouth referrals, lower churn, and faster organic growth. Detractors, on the other hand, are at high risk of churning and may actively discourage others from purchasing. Tracking NPS over time reveals trends in customer sentiment and helps organizations identify when product changes, service issues, or competitive pressures are affecting satisfaction.
Monitoring NPS helps identify what drives satisfaction accuracy, ease of use, API reliability so the product team can prioritize improvements that matter most to customers.
Key Points
- NPS measures customer loyalty on a scale from -100 to +100 based on likelihood to recommend
- It segments customers into Promoters, Passives, and Detractors for targeted follow-up
- High NPS correlates with lower churn, stronger referrals, and faster growth
Best Practices
- Survey customers regularly and track NPS trends over time to spot changes in sentiment
- Follow up with Detractors to understand their concerns and attempt to resolve issues
- Analyze Promoter feedback to identify what drives satisfaction and double down on those areas
Free Tools
Glossary
Churn Rate
The percentage of customers or subscribers who stop using a product or service during a given time period.
Monthly Recurring Revenue (MRR)
The predictable total revenue a subscription business expects to earn each month from all active subscribers.
Win Rate
The percentage of sales opportunities that result in a closed deal, measuring the effectiveness of the sales process.