Net Promoter Score (NPS)
Definition
Net Promoter Score (NPS) is a customer loyalty metric that measures how likely your customers are to recommend your product or service to others. Developed by Fred Reichheld in a 2003 Harvard Business Review article, it has become the most widely used benchmark for customer satisfaction and growth potential.
The NPS Question
“On a scale of 0 to 10, how likely are you to recommend [Company] to a friend or colleague?”
Respondents are grouped into three categories based on their score. Many companies follow up with an open-ended question for qualitative insights.
How NPS Is Calculated
NPS = % Promoters - % Detractors
Example
You survey 500 customers:
- 300 Promoters (9-10) = 60%
- 100 Passives (7-8) = 20%
- 100 Detractors (0-6) = 20%
NPS = 60% - 20% = +40
The Three Categories
Promoters (9-10)
Loyal enthusiasts who keep buying and actively refer others.
Passives (7-8)
Satisfied but unenthusiastic. Vulnerable to competitor offers.
Detractors (0-6)
Unhappy customers who can damage your brand through negative word of mouth.
What Is a Good NPS Score?
Below 0
Needs Improvement
0-30
Good
30-70
Great
70+
Excellent
NPS Benchmarks by Industry
| Industry | Avg NPS |
|---|---|
| SaaS / Software | 30-40 |
| Healthcare | 38 |
| Financial Services | 34 |
| Retail / E-commerce | 54 |
| Hospitality | 53 |
| Consulting | 58 |
Always benchmark against your own industry rather than comparing across sectors.
How to Collect NPS Data
Transactional NPS: send a survey after key touchpoints like onboarding, purchase, or support interactions.
Relational NPS: survey on a regular schedule (quarterly is most common) to track overall sentiment over time.
WittyForm offers a ready-to-use NPS survey template with the standard 0-10 scale and an optional open-ended follow-up.
Related Terms