What Is NPS (Net Promoter Score)?
Net Promoter Score measures customer loyalty by asking how likely a customer is to recommend your product on a 0-10 scale, then calculating the difference between promoters and detractors.
NPS is the most widely used customer sentiment metric in SaaS. Customers are surveyed with a single question: "How likely are you to recommend [product] to a colleague?" Responses are grouped: 9-10 are Promoters, 7-8 are Passives, and 0-6 are Detractors. NPS = % Promoters - % Detractors, resulting in a score from -100 to +100.
A positive NPS means you have more promoters than detractors. B2B SaaS companies typically score between 30 and 60. Scores above 50 are considered excellent. But the number alone is less important than the trend and the follow-up actions it drives.
Using NPS in Customer Success
NPS responses should trigger CS workflows. Detractors (0-6) need immediate outreach to understand and address their concerns. Passives (7-8) are at risk of drifting toward detractor status and may benefit from a check-in. Promoters (9-10) are candidates for advocacy programs, references, and expansion conversations.
The qualitative feedback matters more than the score. The open-text "Why did you give that score?" field reveals specific pain points, competitive threats, and feature requests that CS teams can act on. A detractor who says "We love the product but support response times are terrible" gives you a clear fix.
NPS Best Practices
Survey frequency matters. Annual NPS misses too much. Quarterly or bi-annual surveys provide better trend data. Some companies use relationship NPS (periodic surveys to the whole base) and transactional NPS (triggered after specific interactions like support resolution).
Response rates are critical. If only 15% of customers respond, your NPS is based on a self-selected sample that may not represent the whole base. Aim for 30%+ response rates by keeping the survey short, sending from a recognized address, and closing the loop on previous feedback.
Frequently Asked Questions
What is a good NPS score for SaaS?
B2B SaaS companies typically score between 30 and 60. Scores above 50 are considered excellent. Scores below 0 indicate more detractors than promoters and signal a serious customer satisfaction problem.
How often should you survey NPS?
Quarterly or bi-annually is most common for relationship NPS. Some companies also use transactional NPS after specific interactions. Annual surveys miss too much. More frequent than quarterly risks survey fatigue.
What is the difference between NPS and CSAT?
NPS measures overall loyalty and likelihood to recommend (strategic metric). CSAT measures satisfaction with a specific interaction or experience (tactical metric). NPS predicts long-term retention. CSAT measures immediate satisfaction.