NPS (Net Promoter Score)
What is NPS (Net Promoter Score)?
NPS (Net Promoter Score) is a customer loyalty and satisfaction metric that measures the likelihood of customers recommending your product or service to others on a scale of 0-10. Developed by Fred Reichheld in 2003, NPS has become the most widely adopted customer experience metric in B2B SaaS because it correlates strongly with revenue growth, churn rate, and customer lifetime value.
The metric asks a single question: "On a scale of 0-10, how likely are you to recommend [company/product] to a friend or colleague?" Responses are categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6). The NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score ranging from -100 to +100. A positive NPS indicates more promoters than detractors, while scores above 50 are considered excellent in most industries.
For B2B SaaS companies, NPS serves as a leading indicator for growth potential and customer health. High NPS correlates with lower customer acquisition costs through word-of-mouth referrals, higher retention rates, and greater expansion revenue opportunities. Customer success teams use NPS to identify at-risk accounts, prioritize engagement efforts, and measure the effectiveness of product improvements and support initiatives. Unlike satisfaction surveys that measure past experiences, NPS predicts future behavior by gauging customers' willingness to stake their reputation on your product.
Key Takeaways
Simple Yet Predictive: NPS uses one question to predict customer loyalty, retention, and organic growth through referrals
Three Customer Segments: Categorizes customers as Promoters (9-10), Passives (7-8), or Detractors (0-6) based on recommendation likelihood
Growth Correlation: Companies with higher NPS typically experience faster growth due to positive word-of-mouth and lower churn
Action-Oriented Metric: NPS scores identify which customers to engage for expansion opportunities and which require intervention to prevent churn
Industry Benchmarks: B2B SaaS NPS typically ranges from 30-40, while top performers achieve 50-70+
How It Works
NPS operates through a standardized survey question sent to customers at strategic touchpoints in their journey—after onboarding, following support interactions, or on a regular cadence (quarterly or annually). The survey asks customers to rate their likelihood to recommend on a 0-10 scale, often followed by an open-ended question asking "Why did you give that score?" to capture qualitative feedback.
Responses are automatically segmented into three categories based on the rating. Promoters (9-10) are loyal enthusiasts who actively refer others and typically generate positive reviews and testimonials. Passives (7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offers and unlikely to actively promote your product. Detractors (0-6) are unhappy customers at high risk of churning and potentially damaging your brand through negative word-of-mouth.
The NPS calculation subtracts the percentage of Detractors from the percentage of Promoters, ignoring Passives. For example, if 60% of respondents are Promoters, 25% are Passives, and 15% are Detractors, your NPS is 45 (60% - 15% = 45). This calculation method emphasizes the gap between advocates and critics, making NPS sensitive to shifts in customer sentiment.
Customer success teams integrate NPS data into their CRM and customer health scoring models, triggering automated workflows based on responses. Detractor responses trigger outreach from customer success managers to address concerns and prevent churn. Promoter responses enable sales teams to request referrals, case studies, and reviews. Many companies layer NPS with usage data, customer health scores, and engagement metrics to create comprehensive account risk and opportunity profiles.
Key Features
Universal Benchmark: Enables comparison across industries, competitors, and time periods using a standardized methodology
Leading Indicator: Predicts customer behavior (retention, expansion, referrals) rather than just measuring past satisfaction
Qualitative Context: Follow-up questions provide actionable feedback explaining why customers gave their score
Segmentation Ready: Can be calculated by customer segment, product, region, or cohort to identify specific improvement areas
Closed-Loop Process: Enables systematic follow-up with Detractors and engagement with Promoters
Use Cases
Customer Health Monitoring
Customer success teams incorporate NPS into account health scoring models, automatically flagging accounts when NPS scores drop below thresholds. A customer success manager receives an alert when an enterprise account submits a Detractor score, triggering immediate outreach to understand concerns and create a remediation plan before the renewal date approaches.
Product Roadmap Prioritization
Product teams analyze NPS feedback to identify feature gaps and improvement opportunities. When Detractor responses consistently mention lack of specific integrations or features, product managers prioritize those items on the roadmap. Conversely, features praised by Promoters become marketing differentiators and expansion opportunities for similar accounts.
Referral Program Activation
Marketing and sales teams leverage Promoter responses to fuel referral programs and generate social proof. When a customer submits a 9 or 10 rating, automated workflows request LinkedIn recommendations, G2 reviews, or customer referrals. Sales teams use Promoter lists to identify candidates for case studies and reference calls with prospects in similar industries.
Implementation Example
NPS Survey and Response Management System
Most customer success teams implement NPS using customer experience platforms (Delighted, SurveyMonkey, Qualtrics) integrated with their CRM and customer success tools.
NPS Survey Cadence:
Survey Type | Timing | Purpose | Response Rate Target |
|---|---|---|---|
Relationship NPS | Quarterly | Measure overall loyalty | 30-40% |
Transactional NPS | After support ticket | Gauge support quality | 15-25% |
Onboarding NPS | 30-60 days post-signup | Assess initial experience | 35-45% |
Post-Renewal NPS | 90 days after renewal | Confirm satisfaction | 40-50% |
NPS Scoring and Segmentation:
Closed-Loop Response Workflow:
NPS Action Framework:
According to Bain & Company's research on NPS, companies that excel at closing the loop with NPS feedback see 10-15% higher retention rates. Customer success teams should implement:
Detractor Response Protocol: Contact within 24-48 hours, conduct root cause analysis, create remediation plan, track resolution
Passive Engagement: Monthly check-ins, feature education, success planning to move toward Promoter status
Promoter Leverage: Request referrals, solicit reviews, identify expansion opportunities, recruit for advisory boards
Industry benchmarks from Retently's NPS benchmarks study show B2B SaaS companies average NPS scores between 30-40, with top performers at 50-70. Companies should track NPS trends over time rather than fixating on absolute numbers, monitoring improvements after product releases, support initiatives, or customer success program changes.
Related Terms
Customer Health Score: Composite metric combining NPS with usage, engagement, and support data
Customer Success: Function responsible for monitoring NPS and driving customer outcomes
Churn Rate: Customer loss metric that NPS helps predict and prevent
Customer Lifetime Value: Revenue metric positively correlated with high NPS scores
Expansion Revenue: Growth from existing customers, often higher among Promoters
Churn Prediction: Models that often incorporate NPS as a key signal
At-Risk Customer: Account status often triggered by Detractor NPS responses
Customer Engagement: Activities measured alongside NPS to assess account health
Frequently Asked Questions
What is NPS (Net Promoter Score)?
Quick Answer: NPS measures customer loyalty by asking how likely customers are to recommend your product on a 0-10 scale. The score ranges from -100 to +100, calculated by subtracting the percentage of Detractors (0-6) from Promoters (9-10).
Net Promoter Score provides a standardized way to measure and track customer loyalty over time. Unlike satisfaction surveys that measure past experiences, NPS predicts future behavior—whether customers will renew, expand, churn, or actively promote your product. The methodology's simplicity enables consistent measurement across customer segments, products, and time periods, while the follow-up question provides qualitative context explaining the numerical rating.
How do you calculate NPS?
Quick Answer: NPS is calculated by subtracting the percentage of Detractors (scores 0-6) from the percentage of Promoters (scores 9-10). Passives (scores 7-8) don't affect the calculation. The result ranges from -100 to +100.
To calculate NPS, first categorize responses: Promoters gave 9-10, Passives gave 7-8, and Detractors gave 0-6. Calculate the percentage of each group, then use the formula: NPS = % Promoters - % Detractors. For example, with 50 Promoters (50%), 30 Passives (30%), and 20 Detractors (20%) from 100 responses, your NPS is 30 (50% - 20% = 30). Passives are excluded from the calculation but tracked separately as they represent customers vulnerable to competitive offers.
What is a good NPS score?
Quick Answer: For B2B SaaS, NPS scores of 30-40 are typical, 50+ is excellent, and 70+ is world-class. However, tracking improvement trends over time matters more than absolute numbers, and benchmarks vary significantly by industry.
NPS interpretation depends on industry context and competitive benchmarks. B2B SaaS companies typically see lower NPS than consumer brands due to complex products and organizational buying dynamics. Any positive NPS (above 0) means more Promoters than Detractors, which is a healthy baseline. Scores between 30-40 indicate solid performance with room for improvement. Scores above 50 signal strong customer loyalty and growth potential. Companies should focus on upward trends and closing the gap with direct competitors rather than fixating on absolute numbers.
When should you survey customers for NPS?
Companies should implement both relationship NPS (measuring overall loyalty) and transactional NPS (measuring specific interactions). Relationship NPS surveys are typically sent quarterly or semi-annually to all active customers to track loyalty trends. Transactional NPS surveys trigger after key moments like onboarding completion, support ticket resolution, or feature adoption milestones to capture immediate feedback.
The optimal cadence balances feedback frequency with survey fatigue. Quarterly relationship NPS works well for most B2B SaaS companies, providing regular pulse checks without overwhelming customers. Transactional NPS should focus on critical touchpoints where feedback drives immediate action. Avoid surveying the same customer too frequently—typically no more than once per month across all survey types. Many companies exclude recently surveyed customers from relationship NPS campaigns to maintain response quality.
How do you improve NPS scores?
Improving NPS requires a systematic approach to closing the feedback loop and addressing root causes of detraction. First, categorize Detractor feedback into themes (product issues, support quality, pricing concerns, missing features) to identify improvement priorities. Address quick wins immediately while planning longer-term product and service enhancements. Personally follow up with Detractors to understand concerns and demonstrate responsiveness.
For Passives, implement proactive engagement programs to drive adoption of high-value features and demonstrate ROI through business reviews and success planning. Convert Passives to Promoters by showing how your product drives business outcomes. For Promoters, maintain engagement through exclusive programs, early access to new features, and recognition. Track NPS changes after major initiatives (product releases, process improvements, support training) to validate that investments drive loyalty improvements and sustainable growth.
Conclusion
Net Promoter Score has become an essential metric for B2B SaaS companies to measure customer loyalty, predict growth potential, and drive operational improvements across the customer lifecycle. For GTM teams, NPS provides a simple yet powerful framework for understanding customer sentiment and prioritizing action across marketing, sales, and customer success functions.
Marketing teams leverage Promoters to generate social proof, referrals, and case studies that reduce customer acquisition costs. Sales teams use NPS data to identify expansion opportunities within loyal accounts and avoid pursuing at-risk customers for upsells. Customer success teams build entire programs around NPS segmentation, allocating resources to save Detractors, engage Passives, and activate Promoters. Revenue operations teams incorporate NPS into customer health scoring models and track correlations with net dollar retention and churn metrics.
As customer experience continues to differentiate B2B SaaS competitors, NPS will remain a foundational metric for measuring and improving customer loyalty. Companies that implement systematic NPS programs—surveying regularly, closing the loop on feedback, and tracking improvements—build stronger customer relationships, reduce churn, and create sustainable growth through word-of-mouth and expansion revenue. For any customer-centric organization, mastering NPS measurement and response processes is essential for long-term success.
Last Updated: January 18, 2026
