Net Promoter Score
NPS
A customer satisfaction metric that measures how likely customers are to recommend your product.
Definition
Net Promoter Score (NPS) is calculated by asking customers one question: 'On a scale of 0–10, how likely are you to recommend us to a friend or colleague?' Respondents are grouped: Promoters (9–10), Passives (7–8), and Detractors (0–6). NPS = % Promoters − % Detractors. Scores range from −100 to 100. NPS is widely used as a proxy for customer loyalty and growth potential.
Why It Matters
NPS correlates with revenue growth in many studies — companies with high NPS tend to grow faster due to organic word-of-mouth. For early-stage startups, an NPS above 40 suggests strong product-market fit; above 50 is exceptional. Low NPS is an early warning of churn before it shows up in metrics.
Example
60% Promoters, 25% Passives, 15% Detractors → NPS = 60 − 15 = 45 (strong).