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Retention

What is NPS?

Net Promoter Score

NPS is a customer loyalty metric derived from one question — 'How likely are you to recommend us, 0 to 10?' — calculated as the percentage of promoters (9-10) minus the percentage of detractors (0-6).

Respondents scoring 7-8 are 'passives' and are excluded from the calculation entirely — they're neither subtracted nor added, which surprises people seeing the formula for the first time.

NPS is a single number with no context of its own. A score of 40 means nothing without knowing your industry's typical range, your own trend over time, and — critically — why detractors are detractors, which the score itself never tells you.

The number is only useful paired with a follow-up 'why' question. Without it, NPS is a scoreboard with no explanation for the score, and teams end up debating the number instead of acting on the cause.

Formula

NPS = %Promoters (score 9-10) − %Detractors (score 0-6)

Passives (score 7-8) are counted in the response total but don't appear on either side of the subtraction — a common source of manual calculation errors.

Why NPS matters

NPS correlates with organic referral behavior and repeat-purchase likelihood, making it one of the few survey metrics that plausibly connects to actual revenue rather than just sentiment. Tracked over time, a moving NPS is often an earlier warning sign of churn risk than churn-rate itself, since it's forward-looking rather than a lagging count of who already left.

Same average score, different NPS

100 respondents split 40 promoters, 40 passives, 20 detractors gives an NPS of 20 (40% − 20%). A different 100 respondents split 60 promoters, 0 passives, 40 detractors also averages out similarly on a mean score, but gives an NPS of 20 (60% − 40%) from a far more polarized base — two very different customer bases producing the same headline number, which is exactly why the raw score without distribution is easy to misread.

Common mistakes

  • Treating NPS as comparable across industries without adjustment

    'Good' NPS varies enormously by category — subscription software and airlines have very different typical ranges. Benchmarking your score against an unrelated industry's average produces a meaningless comparison.

  • Skipping the follow-up 'why' question

    A score with no reason attached gives you a temperature reading with no diagnosis. The follow-up question is where the actionable information actually lives — the number alone just tells you something is or isn't working.

  • Surveying only happy, engaged customers

    Sending NPS surveys only to customers who recently had a good support interaction, or excluding churned customers from the sample, inflates the score and hides the detractor feedback that would have been most useful.

Applied, not theoretical

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