Dictionary

Net promoter score (NPS)

“A loyalty score, usually shortened to NPS, based on one question: how likely a customer is to recommend you on a scale of 0 to 10. It is the percentage of promoters (9–10) minus the percentage of detractors (0–6).”

Why net promoter score (NPS) matters to a first-time founder

A recommendation score is a cheap, early signal of whether customers value what you sell enough to put their name to it. Promoters are your likeliest source of referrals, while detractors are more likely to leave and to warn others off. Ignore it and you may keep buying growth through paid acquisition while word of mouth quietly works against you. Tracked over time, it shows whether product changes are making customers happier.

Examples of net promoter score (NPS)

You ask ten paying freelancers. Six say 9 or 10. Two say 7 or 8. Two say 6 or below. Promoters are 60%, detractors are 20%, and the score is 40. The two in the middle still count in the ten. They do not count as promoters.

Common misunderstanding

People treat a high score as proof of revenue, or they average the 0 to 10 answers and call that the score. The score is a gap between two groups, not an average. A customer who scores you a 10 and then cancels has still left. Churn tells you that. This number tells you who would recommend you. Use both.

When to use it

Ask it once customers have had a result, not on the day they sign up. Ten answers will not bear much weight. A clear split, promoters who can name the result and detractors who can name the failure, will.