NPS (Net Promoter Score)
Cheap proxy for advocacy/word-of-mouth; only loosely predictive.
- Formula
- % promoters (9-10) - % detractors (0-6); scale -100 to +100
- Unit
- score (-100 to +100)
- Models
- All models
| All | SaaS 'good' ~30-40 widely cited but no rigorous cross-industry band; vendor benchmarks vary and are sample- and relationship-vs-transactional-dependent. Use trend and verbatims, not the absolute. | vendor benchmarks (Retently/Satmetrix) |
What it is
Net Promoter Score measures customer loyalty on a scale of −100 to +100. It is calculated as % promoters (respondents rating 9–10) minus % detractors (respondents rating 0–6), with passives (7–8) excluded from the calculation.
How to calculate it
Survey customers with the standard "how likely are you to recommend us?" question on a 0–10 scale. Classify respondents as promoters (9–10), passives (7–8), or detractors (0–6). Divide promoter count by total respondents and detractor count by total respondents, express each as a percentage, then subtract the detractor percentage from the promoter percentage.
Why it matters
NPS serves as a leading indicator of retention and word-of-mouth growth across all business models. A rising NPS trend correlates with reduced churn and organic acquisition, while falling scores often precede elevated churn. Because NPS is relationship- or transaction-specific, tracking it at consistent touchpoints (post-onboarding, post-support, annual) is critical for meaningful comparison.
Benchmarks & pitfalls
Vendor benchmarks (Retently/Satmetrix) cite a SaaS "good" score of roughly 30–40, but this is a directional rule of thumb — not the result of a rigorous cross-industry study. Scores vary significantly based on whether the survey captures a transactional moment or an ongoing relationship, the industry vertical, and the composition of the respondent sample. Because absolute scores are not reliably comparable across companies or surveys, use NPS primarily as a trend metric and supplement it with open-ended verbatims to diagnose drivers.