{"id":7492,"date":"2021-06-18T15:31:06","date_gmt":"2021-06-18T15:31:06","guid":{"rendered":"https:\/\/userpilot.com\/blog\/nps-metric\/"},"modified":"2026-04-07T19:26:03","modified_gmt":"2026-04-07T19:26:03","slug":"nps-metric","status":"publish","type":"post","link":"https:\/\/userpilot.com\/blog\/nps-metric\/","title":{"rendered":"NPS Metric: What Does NPS Stand For And How To Calculate It?"},"content":{"rendered":"

What does the NPS metric mean? How do I calculate NPS? Is my NPS score good or bad?<\/p>\n

If you\u2019ve been asking yourself these questions, you\u2019re in the right place.<\/p>\n

Here are the basics of collecting customer<\/a> feedback<\/a> using the Net Promoter Score (NPS).<\/p>\n

What does the NPS metric stand for?<\/strong><\/h2>\n

The Net Promoter Score (NPS) is a widely used metric for measuring customer loyalty and satisfaction. Developed by Fred Reichheld, it helps gauge the likelihood of customers recommending a company’s product or service to others.<\/p>\n

The core question used to calculate the NPS is: “How likely is it that you would recommend our company\/product\/service to a friend or colleague?”. Respondents typically provide a rating on a scale from 0 to 10.<\/p>\n

\"Survey<\/picture>
Survey question for measuring NPS metric<\/figcaption><\/figure>\n

How to calculate net promoter scores?<\/strong><\/h2>\n

To calculate net promoter score, you have to run an NPS survey that asks:<\/p>\n

\u201cOn a scale from 1 to 10, how likely would you be to recommend product x to a friend or colleague?\u201d<\/em><\/p><\/blockquote>\n

Based on user NPS data, they are categorized as Promoters (score 9-10), Passives (score 7-8), or Detractors (score 0-6).<\/p>\n

For the net promoter score calculation, you need to subtract the percentage of detractors from the percentage of promoters<\/strong>.<\/p>\n

Your NPS scores can range anywhere between -100 to 100 depending on your promoter-detractor ratio.<\/p>\n

\"NPS<\/picture>
NPS calculation<\/figcaption><\/figure>\n

You can also use our free NPS calculator here!<\/p>\n

NPS metric: Detractors<\/strong><\/h3>\n

Detractors<\/a> are unhappy customers who respond 6 or lower on your NPS survey. They don’t recommend your product and are more likely to spread negative word about it. This is because they are experiencing issues with your product or can\u2019t see the value in it.<\/p>\n

Addressing detractor concerns can be the quickest way to reduce your churn rate<\/a>.<\/p>\n

NPS metric: Passives<\/strong><\/h3>\n

Passives<\/a> are users who respond with a score of 7-8 on your NPS survey. They are generally satisfied but not very enthusiastic about the product.<\/p>\n

Passives are not included in the NPS metric calculation.<\/p>\n

Turn them into promoters by bringing them to the \u201cAHA moment<\/a><\/u>\u201d.<\/p>\n

NPS metric: Promoters<\/strong><\/h3>\n

Promoters are users who respond with a score of 9-10 on your NPS survey. These are the customers who love your product and are getting continuous value from using your product<\/p>\n

These are the users with high loyalty who will continue to use your product and refer new users to the company (thus fueling your revenue growth).<\/p>\n

Figure out what they like most about your product and build on those strengths.<\/p>\n

How to interpret the NPS metric?<\/strong><\/h2>\n

The NPS metric ranges between -100 and 100. Your NPS metric will be negative when you have more detractors than promoters, and positive when the opposite is true.<\/p>\n

The NPS score varies across industries and checking what the average is for your industry can give you some insight into what\u2019s a good or bad score.<\/p>\n

\"Source:<\/picture>
Source: Survicate<\/figcaption><\/figure>\n

However, while it\u2019s true that specific industries have an average NPS, you don\u2019t have to rely on comparison to gauge your efficacy. Checking for the average can give you a basic idea of what\u2019s a decent score \u2013 just be careful not to lose the bigger picture!<\/p>\n

Surpassing the NPS score of your competitors is always nice but it\u2019s more important that you\u2019re consistently improving on your previous performance. Your most important competition is yourself, rather than other businesses.<\/p>\n

What is a good NPS metric?<\/strong><\/h2>\n

According to Survicate 2022 NPS benchmarks by industry, a good NPS score for SaaS businesses is around 41.<\/p>\n

The industry average used to be 30 just three years ago, so it just goes to show that the expectations of customers never stop rising as competition increases.<\/p>\n

Of course, the industry leaders tend to have NPS metrics that are well above average. The chart below shows the companies with the highest NPS score in their respective niches.<\/p>\n

\"Source:<\/picture>
Source: Survicate<\/figcaption><\/figure>\n

What is a bad NPS metric?<\/strong><\/h2>\n

A negative NPS score is bad since it means you have more detractors than promoters. This is an indicator that users don\u2019t see value in your product.<\/p>\n

Either your product needs to be improved or you\u2019re targeting the wrong audience. In any case, focus on providing value to your customers rather than getting hung up on benchmarks.<\/p>\n

If your product is suffering from low scores then reflect on the reasons why users are dissatisfied and act on them to improve your score. You can gather extra qualitative insights using the follow-up NPS question.<\/p>\n

How to run an NPS survey and collect actionable insights?<\/h2>\n

To effectively run net promoter score surveys and derive actionable insights for your business, here are the key steps to follow:<\/p>\n

Determine the type of NPS surveys<\/h3>\n

Before using NPS surveys<\/a>, it’s important that you know which type to use. There are two main types: transactional and relational, each used in different scenarios.<\/p>\n