NPS (Net Promoter Score)
A customer satisfaction metric measuring how likely users are to recommend a product on a scale of 0-10.
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Definition
Net Promoter Score (NPS) is a customer loyalty metric that asks one question: "How likely are you to recommend [product] to a friend or colleague?" on a 0-10 scale. Respondents are classified as Promoters (9-10), Passives (7-8), or Detractors (0-6).
NPS ranges from -100 to +100. Scores above 0 are acceptable, above 30 is good, above 50 is excellent, and above 70 is world-class. Top tech companies typically score 50-70+.
While NPS is widely used, it has limitations: it does not explain why users feel the way they do, cultural differences affect scoring patterns, and it can be gamed. Best practice is to combine NPS with follow-up questions ("What could we improve?") and track trends over time.
Why It Matters for Founders
NPS correlates strongly with revenue growth and customer retention. Companies with high NPS grow 2-3x faster than competitors. Promoters have higher LTV, lower churn, and generate word-of-mouth referrals that reduce CAC.
For founders, NPS provides a simple, standardized way to track customer satisfaction over time and compare against industry benchmarks. The follow-up question ("Why did you give this score?") is often more valuable than the score itself, revealing specific areas for improvement.
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Formula
NPS = % Promoters (9-10) - % Detractors (0-6)Real-World Example
Survey of 200 customers: 120 score 9-10 (60% promoters), 40 score 7-8 (20% passives), 40 score 0-6 (20% detractors). NPS = 60% - 20% = 40.
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Frequently Asked Questions
What is NPS?+
What is a good NPS?+
How often should you measure NPS?+
What are NPS limitations?+
NPS vs. CSAT?+
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