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What is Net Promoter Score (NPS)?
NPS is a single-question survey measuring customer loyalty: "On a 0-10 scale, how likely are you to recommend us to a friend?" Promoters (9-10) minus Detractors (0-6) = NPS, ranging −100 to +100. Industry benchmarks: +30 is good, +50 excellent, +70 best-in-class. NPS predicts retention better than satisfaction surveys.
The full answer
The single-question survey
NPS (Net Promoter Score) was created by Fred Reichheld at Bain & Company in 2003 ("The One Number You Need to Grow"). The single question:
> "On a scale of 0 to 10, how likely are you to recommend [Company / Product] to a friend or colleague?"
Responses split into three categories:
| Category | Score range | Behavior |
|---|---|---|
| Promoters | 9-10 | Loyal advocates; word-of-mouth source |
| Passives | 7-8 | Satisfied but not enthusiastic; vulnerable to competitors |
| Detractors | 0-6 | Unhappy; will speak negatively |
The formula:
``` NPS = % Promoters − % Detractors
(Passives are NOT included; they're counted in the denominator but contribute 0) ```
Example: 50% Promoters, 30% Passives, 20% Detractors → NPS = 50 − 20 = +30.
NPS range: −100 to +100
- −100: every customer is a Detractor (extreme)
- 0: equal Promoters and Detractors
- +100: every customer is a Promoter (extreme)
Industry benchmarks (calibrated against 2024 published data)
| NPS | Verdict | Examples |
|---|---|---|
| <0 | Severe customer dissatisfaction | Many telecoms, ISPs, airlines |
| 0-20 | Below average | Many traditional industries |
| 20-30 | Average | Most consumer products |
| 30-50 | Good | Healthy SaaS target |
| 50-70 | Excellent | Apple, Tesla, well-loved consumer brands |
| 70-80+ | Best-in-class | Netflix, Amazon, Costco at peak; rare |
NPS varies significantly by industry. B2B SaaS averages NPS 30. Consumer SaaS averages 25. Healthcare averages 9. Airlines often score below 0.
Why NPS predicts retention better than satisfaction
Customer Satisfaction (CSAT) asks "How satisfied are you?" — answered in the moment. Satisfaction is transient; loyalty is durable.
NPS asks "Would you recommend?" — answered with stakes (your reputation among friends). The latter correlates strongly with: - Repeat purchase / renewal probability - Word-of-mouth referrals (which drive low-CAC acquisition) - Expansion revenue (Promoters upgrade more) - Reduced support costs (Promoters use product as designed)
Research (Bain, multiple replications): NPS is 2-3× more predictive of retention than CSAT.
How to measure NPS correctly
| Best practice | Why |
|---|---|
| Survey at-rest customers (not just trial users) | Trial users haven't formed lasting opinion |
| Wait until customer has used product 30+ days | Earlier responses are anchored to onboarding experience, not steady-state |
| Send to broad sample, not selected enthusiasts | Selection bias destroys signal |
| Ask follow-up: "Why?" | Open-ended response provides actionable insights |
| Re-survey same customers quarterly | Track movement over time, not just snapshots |
| Don't include in dashboards as headline metric | NPS as KPI creates gaming behavior |
The "NPS theater" problem
Many companies turn NPS into a vanity metric: - Asking only customers who recently had positive experiences - Surveying after positive moments (e.g., after a save by support) - Excluding response categories ("only counting Promoters") - Adjusting weighting until the number looks good - Comparing NPS across products with different sampling
The resulting "NPS 75!" looks great but doesn't reflect actual customer sentiment. Honest NPS: - Random sample from entire customer base - Quarterly cadence - Methodology consistent across reporting periods - "Why?" follow-up included
NPS variations
| Variant | What it measures |
|---|---|
| Relationship NPS | Periodic NPS (quarterly survey to all customers) — measures overall sentiment |
| Transactional NPS | Post-event NPS (after support ticket, after purchase) — measures specific touchpoint |
| Employee NPS (eNPS) | Same question to employees about workplace |
Most B2B SaaS report both relationship + transactional NPS separately.
Common NPS mistakes
- Comparing NPS across industries — benchmarks vary; SaaS 30 ≠ Telecom 30
- Sampling bias — only surveying engaged users
- Ignoring Passives — they're 30-50% of most customer bases; the 7-8 range is the swing vote
- Treating NPS as the goal — it's a metric, not an objective; the goal is retention + growth
- Single-survey thinking — NPS is a trend, not a snapshot; track quarterly
How to improve NPS
- Address Detractor root causes — open-ended "Why?" responses reveal recurring complaints
- Convert Passives → Promoters — these are the most-leverage segment; satisfied but not loyal
- Build referral mechanisms — make it easy for Promoters to refer (refer-a-friend program, share buttons)
- Reduce friction in obvious pain points — checkout, support, billing
- Communicate proactively — keep customers informed of improvements + new features
Cross-reference: see /pages/what-is/customer-acquisition-cost + /pages/what-is/lifetime-value + /pages/what-is/churn-rate.
Time ranges by condition
| Condition | Duration | Note |
|---|---|---|
| NPS scale | −100 to +100 | — |
| Average NPS (most industries) | 20-30 | — |
| Good NPS (SaaS target) | 30-50 | — |
| Excellent NPS | 50-70 | — |
| Best-in-class NPS | 70+ | — |
What changes the time
- Industry variance. NPS varies 30+ points across industries — SaaS averages 30, telecom often negative. Always compare within industry
- Sampling methodology. Selection bias (only surveying engaged) inflates NPS by 15-30 points. Random sample only
- Customer tenure. New customers (1-3 mo) score differently than tenured (12+ mo); always measure across cohorts
- Cadence. Single-snapshot NPS misleading; quarterly trend reveals actual sentiment movement
Common questions
What's a "good" NPS for SaaS?
For B2B SaaS: +30 is good, +50 excellent, +70 best-in-class. Industry-leading SaaS companies (Atlassian, Slack at peak, Salesforce in segments) hit 50-70. For consumer SaaS: targets are slightly lower (Netflix peaked at +65; most consumer products at 30-50). Compare to your industry, not absolute number. NPS of 25 in SaaS is below average; NPS of 25 in healthcare is excellent.
How often should I measure NPS?
Quarterly is canonical for Relationship NPS. Track trend over time, not absolute number. Transactional NPS (post-support ticket, post-purchase) can be measured per-event. Avoid monthly NPS — too noisy, creates response fatigue, often manipulated by Q4-push behavior. Reasonable cadence: quarterly relationship + continuous transactional + annual deep-dive open-ended.
Should I include NPS in employee KPIs?
No — NPS as employee KPI creates gaming behavior. Customer support teams asked to maximize NPS will: (1) Only survey happy customers. (2) Cherry-pick timing. (3) Skip difficult customers. The metric becomes optimized for itself, not for actual customer loyalty. Better: include NPS in board reports + customer success leadership review; don't weight it heavily for line-staff compensation.
What's the difference between NPS and CSAT?
CSAT (Customer Satisfaction) measures momentary happiness ("Were you satisfied with this interaction?" 1-5 scale). NPS measures durable loyalty ("Would you recommend us to a friend?" 0-10 scale). CSAT is transactional and immediate; NPS is relationship and predictive. CSAT can be high in moment but customer still churns; NPS correlates 2-3× better with actual retention. Use CSAT for service operations; use NPS for strategic loyalty measurement.
Sources
We cite primary research, expert practice, and authoritative reference. Higher-tier sources weighted heavier. See methodology.
- T1Fred Reichheld, "The One Number You Need to Grow" — Harvard Business Review 2003 — original NPS methodology paper
- T1Bain & Company NPS research — Continued NPS research; correlation with retention + growth metrics
- T2Satmetrix NPS Benchmarks Study — Industry-by-industry NPS benchmarks; published annually
- T2Frederick Reichheld, "The Ultimate Question 2.0" — Updated NPS methodology + implementation guidance
- T2Customer Gauge Industry NPS Benchmarks 2024 — Annual cross-industry NPS data — published consensus benchmarks
Cite this page
de Vries, P. (2026). What is Net Promoter Score (NPS)?. AskedWell. Retrieved 2026-05-27, from https://askedwell.com/pages/what-is/net-promoter-score
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