Net Promoter Score, or NPS, is a simple yet powerful tool to measure customer satisfaction and loyalty. Whether you’re running a startup, a SaaS business, or a customer service team, NPS can help you understand what your customers really think about your brand.
In this post we explain NPS with examples and an easy to use calculator.
Table of Contents
🙋♀️ What Is NPS?
NPS is a customer loyalty metric that measures how likely your customers are to recommend your product or service to others. It’s based on a single question:
“On a scale from 0 to 10, how likely are you to recommend us to a friend or colleague?”
Your respondents fall into three categories:
- Promoters (9-10): Loyal fans who’ll keep buying and refer others.
- Passives (7-8): Satisfied but not enthusiastic. Vulnerable to competitors.
- Detractors (0-6): Unhappy customers who may damage your brand through negative word-of-mouth.
🧮 How to Calculate NPS
The formula for NPS is:
NPS = % of Promoters – % of DetractorsIt’s expressed as a number between -100 and +100.
🔢 Example
- Promoters: 70%
- Detractors: 10%
NPS = 70 – 10 = 60
That’s a strong NPS!
🌐 Practical Use Cases for NPS
📦 Product Feedback and Improvement
Use Case: After a product launch, send NPS surveys to measure customer sentiment.
Why: Promoters can validate successful features, while Detractors provide insights into issues or missing functionality.
📞 Customer Support Evaluation
Use Case: Automatically trigger an NPS survey after a support ticket is closed.
Why: Helps assess whether the customer service experience is delighting or disappointing users.
🛒 Post-Purchase Feedback
Use Case: Send NPS surveys shortly after a customer makes a purchase.
Why: Measures satisfaction with the purchase experience, delivery speed, and overall customer journey.
👥 Customer Retention Monitoring
Use Case: Regularly collect NPS data to track customer loyalty over time.
Why: A declining NPS can be an early warning signal for churn or declining satisfaction.
📈 Benchmarking Across Teams or Regions
Use Case: Compare NPS across different branches, regions, or departments.
Why: Identify which areas of your business are performing well and where improvements are needed.
🤝 Employee NPS (eNPS)
Use Case: Use the same concept internally to measure employee satisfaction.
Why: Understand how likely employees are to recommend your company as a great place to work.
💼 Board and Investor Reporting
Use Case: Share NPS as a core KPI in business performance reports.
Why: It’s a concise metric that reflects customer sentiment and long-term brand value.
🎯 Targeted Marketing Campaigns
Use Case: Identify Promoters and invite them to referral or review programs.
Why: Promoters are more likely to generate word-of-mouth marketing and bring in new customers.