NPS (Net Promoter Score)

Net Promoter Score (NPS) is calculated by asking customers "How likely are you to recommend this product to a colleague?" on a 0-10 scale. Respondents are categorized as Promoters (9-10), Passives (7-8), or Detractors (0-6). NPS equals the percentage of Promoters minus the percentage of Detractors, yielding a score from -100 to +100.

NPS is popular because it is simple to implement, easy to benchmark, and correlates with growth. Companies with NPS above 50 tend to grow through word-of-mouth, reducing their reliance on paid acquisition. Companies with negative NPS face an uphill battle because dissatisfied customers actively discourage others from buying.

The limitations of NPS are well-documented: it reduces complex customer sentiment to a single number, response rates are often low and biased toward satisfied customers, and the scoring methodology is somewhat arbitrary (why is a 6 a Detractor but a 7 is not?). Despite these limitations, tracking NPS over time and segmenting by customer cohort, use case, or lifecycle stage provides valuable directional insight into product quality and customer experience.