GTM Strategy & SaaS Metrics

Net promoter score (NPS)

In short

Net promoter score (NPS) is a customer loyalty metric based on a single survey question: "How likely are you to recommend us to a friend or colleague?" Customers answer on a scale from 0 to 10, and the result is a score between -100 and +100.

NPS is a quick signal of customer sentiment. It does not explain why people feel the way they do, so teams pair it with a follow-up question and with behavior data such as renewals.

How NPS is calculated

Respondents fall into three groups based on their rating.

  • Promoters: Score 9 or 10. Likely to recommend and keep buying.
  • Passives: Score 7 or 8. Satisfied but not enthusiastic.
  • Detractors: Score 0 to 6. Unhappy and at risk of leaving or speaking badly.

The formula

NPS equals the percentage of promoters minus the percentage of detractors. Passives are counted in the total but not in the subtraction. For example, if 50% of respondents are promoters and 20% are detractors, NPS is 30.

How to use NPS in GTM

  • Find advocates: Promoters are good sources for referrals, reviews, and case studies.
  • Spot churn risk: Detractors in key accounts need quick follow-up from customer success.
  • Segment results: Compare by plan, industry, or tenure to see where experience differs.
  • Track trends: Direction over time matters more than a single reading.

Best practices

  • Ask at consistent moments, such as after onboarding or on a regular cycle.
  • Add an open question, such as "What is the main reason for your score?"
  • Close the loop by contacting detractors.
  • Look at response rates, since a small sample can mislead.

Limitations

NPS reduces a relationship to one number and can vary by culture, survey timing, and who answers. It works best next to other metrics such as retention rate and customer satisfaction, not as a replacement for them.

Net promoter score (NPS) FAQs

What is net promoter score (NPS)?

Net promoter score is a customer loyalty metric from one survey question asking how likely someone is to recommend a company on a 0 to 10 scale. The score is the percentage of promoters minus the percentage of detractors.

How do you calculate net promoter score?

Group responses into promoters (9 to 10), passives (7 to 8), and detractors (0 to 6). Subtract the percentage of detractors from the percentage of promoters. The result ranges from -100 to +100.

What is a good NPS score?

It depends on the industry, customer type, and survey method, so compare your score with your own past results and with similar companies rather than a universal target. A rising trend and a positive score are usually healthy signs.

What is the difference between NPS and CSAT?

NPS measures overall loyalty and willingness to recommend the company. CSAT measures satisfaction with a specific interaction or product, such as a support ticket. Many teams use both for different questions.

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