Net Promoter Score (NPS)

NPS

Net Promoter Score (NPS) is a customer loyalty metric derived from a single survey question: "On a scale of 0–10, how likely are you to recommend this product to a friend or colleague?" Respondents are segmented into Promoters (9–10), Passives (7–8), and Detractors (0–6). NPS is calculated as the percentage of Promoters minus the percentage of Detractors, yielding a score from -100 to +100.

formula.sh

NPS = % Promoters − % Detractors

> Promoters: respondents who score 9 or 10 — loyal enthusiasts likely to refer others
> Passives: respondents who score 7 or 8 — satisfied but not enthusiastic; excluded from calculation
> Detractors: respondents who score 0–6 — unhappy customers who can damage your brand

example

example.sh

200 survey responses: 110 Promoters (55%), 50 Passives (25%), 40 Detractors (20%).

55% − 20%

→ NPS = +35

why it matters

NPS is a leading indicator of organic growth. Promoters generate referrals and expand into new seats. Detractors generate negative word-of-mouth and churn. The correlation between high NPS and low churn is well established in B2B SaaS — companies with NPS above 50 consistently show net revenue retention above 110%.

The number itself is table stakes. The qualitative follow-up — "what is the primary reason for your score?" — is where the real value lives. A well-instrumented NPS program with segmented follow-up by user persona, plan tier, and tenure will surface the exact friction points that your retention analytics cannot pinpoint. NPS without qualitative follow-up is a vanity metric with a better-sounding name.

common mistakes

✗Surveying only recently churned or recently onboarded users — this biases the score dramatically in either direction

✗Running NPS once a year and treating the result as a stable fact rather than a trend

✗Ignoring the open-text follow-up — the score is the headline, the text is the story

pro tips

✓Run NPS on a rolling basis triggered by account age (e.g., 30 days after activation and every 6 months thereafter) rather than a calendar quarter

✓Segment NPS by plan tier immediately — enterprise customers and free users will have wildly different scores driven by different issues

✓Close the loop with Detractors within 48 hours of their response — a personal email from a founder or CSM converts a surprising number of Detractors into Passives

the mrrsucks take

Your NPS is so low it qualifies as a negative integer and a cry for help. Somewhere between 0 and 6, forty percent of your customers are actively warning their friends away from you, which is, technically, a form of marketing.

faq

What is a good NPS for a SaaS company?+

B2B SaaS benchmarks: below 0 is poor, 0–20 is average, 20–50 is good, 50+ is excellent. Slack and Linear consistently score above 60. Most early-stage tools land between 20 and 40 if the product is solid.

How often should I run NPS surveys?+

Transactional NPS (triggered by a milestone like 30-day activation) is more actionable than periodic NPS. If you must run periodic surveys, quarterly is enough — annual NPS is too infrequent to drive operational decisions.

Should I weight NPS by revenue?+

Yes, once you have meaningful plan tiers. A Detractor on a $500/mo plan matters more to your business than a Promoter on a free plan. Revenue-weighted NPS is a more honest picture of brand health.

$10K MRR milestone›Churn roasts›

related metrics

./install-the-daemon

$9. 365 roasts. one public endpoint of pure shame.