Net Promoter Score (NPS)

How NPS Works

The Basic Question: “How likely are you to recommend us to a friend or colleague?“

Customers rate you on a scale of 0-10, and based on their scores, they fall into three groups:

• Promoters (Scores 9-10) 🤩
  • Your biggest fans
  • Actively recommend you
  • Keep coming back
  • Spend more over time
• Passives (Scores 7-8) 😐
  • Your “meh” customers
  • Satisfied but not excited
  • Might try competitors
  • Don’t spread the word
• Detractors (Scores 0-6) 😞
  • Your unhappy customers
  • Might post negative reviews
  • Probably won’t return
  • Tell others to stay away

The Math Made Simple

The formula for NPS is:

NPS = % of Promoters - % of Detractors

Example:

• 55 Promoters (55%)
• 30 Passives (30%)
• 15 Detractors (15%)

Your NPS = 55 – 15 = 40

What’s a Good NPS?

Think of NPS like a school grade:

• Above 70: A+ (Outstanding!) 🌟
• 50 to 70: A (Excellent!) 💫
• 0 to 50: B (Good) 👍
• Below 0: Needs Work 💪

Industry benchmarks:

• Tech companies: 35-40 is typical
• Retail stores: 45-50 is common
• Banks: 35-45 is normal
• Healthcare: 25-30 is average

When to Ask for NPS?

Timing is crucial! 🎯

• Good Times to Ask:
  • After customers have real experience
  • When they’ve used key features
  • Following successful interactions
  • At regular intervals (quarterly)
• Bad Times to Ask:
  • Right after sign-up (too early)
  • During technical issues
  • Holiday rush periods
  • Too frequently

How to Run NPS Surveys Right

• Keep it Simple: One question + one follow-up (“Why did you give this score?”).
• Time it Right: SaaS (after 2-3 weeks), E-commerce (few days after delivery), Services (after completion).
• Follow Up: Thank everyone, respond to detractors quickly, and act on suggestions.

Common Mistakes to Avoid ⚠️

• Surveying too often
• Making surveys too long
• Ignoring feedback
• Focusing only on the score