ToolStack
Satisfaction Metric

Net Promoter Score (NPS)

NPS measures customer loyalty by asking one question: "How likely are you to recommend this product to a friend or colleague?" on a 0–10 scale. Promoters (9–10) minus Detractors (0–6) equals your NPS. It's widely used because it correlates with growth — products with high NPS grow faster through word-of-mouth — but it's a lagging indicator and easily gamed.

Formula
NPS = % Promoters (score 9–10) − % Detractors (score 0–6)

Note: Passives (7–8) are excluded from the calculation but should be tracked separately as a conversion opportunity.

Healthy range

NPS > 50 is excellent; > 70 is world-class (Apple, Tesla territory)

Warning signs

NPS < 0 means more detractors than promoters — a serious signal of product problems

Benchmarks by segment

SegmentBenchmark
B2B SaaS (top quartile)40–60
B2B SaaS (median)20–35
Consumer software30–50
Enterprise software10–25 (lower due to switching costs masking dissatisfaction)

How to improve NPS

1

Follow up with every detractor within 48 hours — these conversations generate the most actionable product insights

2

Understand why passives gave 7–8 instead of 9–10: what one thing would move them to promoter?

3

Close the feedback loop: when you fix an issue detractors raised, tell them you fixed it

4

Survey at multiple points in the customer lifecycle, not just annually — NPS varies by stage

Common measurement mistakes

!Surveying only happy customers (confirmation bias — send NPS to all users on the same cadence)
!Treating NPS as a success metric to optimise rather than a diagnostic to learn from
!Comparing NPS across different survey methodologies — email vs in-app surveys produce different distributions

Frequently Asked Questions

When should I survey for NPS?

The highest-signal timing is 30–90 days after signup (post-activation) and 12 months after renewal. In-product surveys at moment of value (after completing a key task) are more accurate than quarterly email blasts.

Is NPS a good product metric?

NPS is a useful signal but a poor primary metric. It's lagging (reflects past experience), doesn't tell you what to fix, and can be gamed by surveying selectively. Use it alongside retention and engagement data for a fuller picture.

Related metrics

Churn RateRetention RateActivation Rate