NPS asks one question, usually on a scale of 0 to 10, about the likelihood of recommending a company. Respondents are grouped as promoters, passives and detractors, and the score is the share of promoters minus the share of detractors.
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Using it well
The follow-up question matters more than the number. Ask why they chose that score and route the answers to the teams who can act on them.
Limits
NPS is a loose indicator of sentiment, not a predictor on its own. Compare against your own history, since scores differ across industries and survey methods.
Common mistakes
Chasing the score
Pushing for higher numbers without fixing causes just games the metric.
Frequently Asked Questions
Often enough to spot trends without annoying customers. Many teams survey after key milestones and at regular intervals.
Keep reading
- Customer health score: A customer health score combines signals such as usage and support activity into one rating of how likely an account is to stay.
- Churn Rate: The rate at which a SaaS company loses customers or recurring revenue over a period. Logo churn counts accounts; revenue churn counts dollars.
- Word of Mouth: Customers recommending a product to others through conversation, communities, social posts and reviews. A strong, hard-to-measure SaaS acquisition source.
- Testimonials: Testimonials are statements from real customers about their experience with a product, shown on a website to help prospects judge whether it suits them.
- Acquisition Channel: A route through which a company finds new customers, such as organic search, paid ads, referrals, partners or outbound sales. Each has its own costs and limits.
- Annual Recurring Revenue: The yearly value of a SaaS company's active subscription contracts, excluding one-off fees. The headline size metric for most subscription businesses.
- Average Contract Value: The average annual value of a customer contract, excluding one-off fees. It shapes which sales motion and acquisition channels a SaaS company can afford.
- Average revenue per account: Average revenue per account is recurring revenue divided by the number of paying accounts.
