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RetentionReviewed September 5, 2026

What is NPS?

Net Promoter Score

NPS is a customer loyalty metric based on 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 left out of 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, most importantly, 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. It's 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, not 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, not 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 hugely 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 useful 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.

Related terms

Full glossary
Retention

Churn Rate

Churn rate is the percentage of customers, or of recurring revenue, lost during a given period.

Customer Segmentation

Customer Engagement Score

Customer Engagement Score is a weighted sum of a customer's activity events (logins, feature use, content interaction, support contact and similar signals), normalized to a single score that segments customers by ongoing behavioral engagement, independent of what or how much they've bought.

Retention

Win-Back Campaign

A win-back campaign is a marketing sequence aimed at customers who have already stopped buying or subscribing, intended to bring them back after the relationship has lapsed.

Retention

Repeat Purchase Rate

Repeat purchase rate is the percentage of customers who have placed more than one order, measured over a defined window.

Retention

Brand Loyalty

Brand loyalty is when customers keep choosing the same brand again and again, even when cheaper or more convenient options are available, because they trust it and like how it makes them feel.

Fundamentals

Customer Experience

Customer experience, or CX, is the overall impression customers form from every interaction with your business, from seeing an ad and browsing your website to buying, getting support and coming back.

Fundamentals

Brand Equity

Brand equity is the extra value a business gets from its name and reputation. Strong brand equity means people choose you, pay more or recommend you because they know and trust the brand, not only because of the product itself.

Fundamentals

Review Management

Review management is the process of asking customers for reviews, tracking new reviews across sites like Google, Yelp and Facebook, and responding to them in a timely, helpful way.

Fundamentals

Word-of-Mouth Marketing

Word-of-mouth marketing is when customers recommend a business to friends, family, coworkers or online followers, and when a business takes deliberate steps to encourage those recommendations.

Measurement

Sentiment Analysis

Sentiment analysis is the use of software, usually natural language processing or AI models, to judge whether text like reviews, social posts, survey answers or support tickets expresses a positive, negative or neutral feeling.

Retention

Referral Marketing

Referral marketing is a structured way of encouraging existing customers to recommend your business to others, usually with a reward for the person who refers, the new customer or both.

Applied, not theoretical

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