Net Promoter Score (NPS)
NPS measures customer loyalty by asking how likely they are to recommend your product on a 0-10 scale, producing a score from -100 to 100.
Net Promoter Score is a customer loyalty metric based on a single question: “How likely are you to recommend our product to a colleague?” Respondents answer on a 0-10 scale. Those who answer 9-10 are promoters, 7-8 are passives, and 0-6 are detractors. NPS = % promoters minus % detractors.
NPS matters in GTM operations as a leading indicator of retention and expansion. Customers who are promoters renew at higher rates, expand their usage, and refer new business. Detractors churn, and often tell others about their negative experience. Tracking NPS gives you an early warning system for account health.
The calculation is straightforward. Survey 100 customers: 50 rate you 9-10 (promoters), 30 rate you 7-8 (passives), and 20 rate you 0-6 (detractors). Your NPS is 50% - 20% = +30. Scores above 50 are considered excellent in B2B SaaS; above 70 is world-class.
What makes NPS valuable isn’t the number itself — it’s the follow-up. Always include an open-ended question: “What’s the primary reason for your score?” The qualitative responses tell you what to fix (for detractors), what to maintain (for passives), and what to double down on (for promoters).
For example, if detractors consistently mention slow customer support, that’s a specific, actionable problem. If promoters consistently praise a particular feature, that should feature prominently in your marketing and sales messaging.
Survey timing matters. Send NPS surveys at consistent intervals (quarterly is common) and after key milestones (post-onboarding, post-renewal). Analytics tools help you track NPS trends over time and correlate scores with retention and expansion outcomes.