What is NPS? A quick guide to Net Promoter Score
NPS is the most widely used metric to measure customer loyalty. Here's the short version — what it is, how it works and how to calculate it.
What NPS stands for
NPS stands for Net Promoter Score. Created in 2003 by Fred Reichheld, it's a metric that measures customer loyalty from a single simple question: how likely would the customer recommend your company to a friend. Unlike other satisfaction surveys, NPS captures actual intent to recommend — one of the strongest signals of retention and organic growth.
How it works
The respondent gives a score from 0 to 10. Based on that score, they are placed in one of three groups: promoters (9–10), passives (7–8) and detractors (0–6). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The result ranges from −100 to +100.
The NPS question
The standard question is: "On a scale of 0 to 10, how likely are you to recommend [company/product] to a friend or colleague?". Many companies add an open-ended follow-up right after — "What's the main reason for your score?" — to understand the why. That second question is where the actionable insights live.
Benchmark zones
NPS is interpreted across five zones: Excellent (≥70), Great (50–69), Good (30–49), Fair (0–29) and Risk zone (below 0). Each industry has different benchmarks — B2B SaaS sits around 30–40, retail 50–60, financial services 20–30. Always compare against your industry, not an absolute number.
- ✓Excellent: ≥ 70 — world class
- ✓Great: 50 to 69 — strong performance
- ✓Good: 30 to 49 — healthy result
- ✓Fair: 0 to 29 — caution
- ✓Risk zone: below 0 — critical
NPS benchmarks by industry
What counts as a "good" NPS varies a lot by industry. In regulated or highly competitive markets, NPS tends to be lower; in aspirational brands and high-retention tech, higher. Use the reference below to compare — but remember, what matters most is improving your own number over time.
- ✓B2B SaaS: typically 30 to 40
- ✓Online retail: typically 50 to 60
- ✓Financial services: typically 20 to 30
- ✓Healthcare and clinics: typically 40 to 60
- ✓Education: typically 35 to 50
- ✓Telecom and carriers: typically 0 to 25
NPS vs CSAT vs CES
NPS measures overall loyalty. Two other metrics complete the picture: CSAT (Customer Satisfaction) measures point-in-time satisfaction after a specific interaction (support, purchase). CES (Customer Effort Score) measures how much effort the customer had to spend to solve something. The three surveys cover different angles of experience and work best together.
How to calculate NPS
The formula is: NPS = % promoters − % detractors. Quick example: with 200 responses, 120 promoters (60%), 40 passives (20%) and 40 detractors (20%) results in an NPS of 40. You can use our free calculator to get the result instantly and see which zone your score lands in.
When to use NPS
NPS works well to track overall customer health (relational NPS, quarterly or semi-annual) and to measure experience after specific events (transactional NPS, right after a support ticket or purchase). For best results, automate collection via Email, WhatsApp or an Embed widget on your website and close the loop with low-scorers.
Frequently asked questions
What's the difference between NPS and satisfaction?
Satisfaction (CSAT) measures how much the customer enjoyed a specific interaction. NPS measures something deeper: how likely they are to recommend your company to others. A satisfied customer isn't always a promoter — but every promoter is satisfied.
What is a good NPS?
Above 50 is considered great and above 70 is world class. But benchmarks depend on the industry: B2B SaaS 30–40, retail 50–60, financial services 20–30. What matters most is improving your own number over time.
How many responses are needed to trust the NPS?
For statistical stability, aim for at least 100 responses per period. With fewer than 50, the number swings widely with each new vote. Smaller bases can use 90-day rolling windows to build up volume.
How do I increase response rates?
Use a short, personal subject line, send at the best time for your audience, use multiple channels (Email, WhatsApp, Embed), keep the survey to one or two questions max and close the loop with detractors. Short WhatsApp surveys can reach 40% response rates.
Does NPS work for every type of company?
Yes. NPS works in B2B, B2C, SaaS, retail, services, healthcare and education. What changes is the context question and the channel. What matters is measuring consistently and acting on results.
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