What Is A Good Net Promoter Score (NPS)?

October 29, 2021

Net Promoter Score or NPS is a term that is being thrown a lot these days. It might even seem like a buzzword. In fact, it is a crucial concept that everyone in SaaS should understand. The reason behind this is that it keeps track of the most important factor, which is customer loyalty and satisfaction. Adobe confirms that customer-centric companies grew faster with revenue of 1.4 faster and also increased customer loyalty 1.6x than others*.

Happy customers are essential for SaaS since retaining customers and ensuring that the churn rate remains low is a priority. Otherwise, it is impossible to achieve high monthly recurring revenue. Knowing the NPS will allow the team to find out how the product is received by customers and how likely they are to spread the word. Hundreds of fortune 500 companies have used NPS, including Microsoft, General Electric, and American Express.

What Is NPS?

NPS measures customer happiness and product loyalty. It also evaluates how likely your customers are to promote your products to people they know. Unlike most generic metrics such as customer engagement, NPS is a metric that considers customer happiness and an increase in revenue due to word of mouth. A healthy NPS is everything for a SaaS team. It means that your product solves customer pain points and provides value. It can also be described as how likely your customers are at generating leads that are likely to convert.

A good NPS is one that can help you boost revenue. To better understand an NPS, it is important to know that it is calculated on a scale of 0 to 10. The greater the score, the more likely your customers would be to recommend your business to family, friends, and business associates.

Here is what each score means:  

  • 6 or below = ‘Detractors’
  • 7 or 8 = ‘Passives’
  • 9 or 10 = ‘Promoters’

Why SaaS Need It?

SaaS companies such as Zoom, HubSpot, and DocuSign need NPS as it provides a unique perspective on SaaS customers. There is a lot that you can do with NPS data. You can use it to create additional segments based on metrics that truly matter to your business. For instance, you can segment users based on tiered pricing plans. Similarly, you can use your NPS for focusing on customer success and your upsell strategy. The results you obtain can even be leveraged for preparing targeted follow-up questions to gain greater insights. NPS is more than a score. It complements hard data by offering anecdotal findings. SaaS companies can turn to their NPS to unlock customers' voices. Besides, your NPS can be used as a referral trigger.


  • Easy To Use: Even if you have never tried NPS, you can start using it in no time. It’s a maniable tool that everybody can understand.
  • Easy To Implement: You can make changes from time to time with just a few clicks. a solution that allows you to save time and therefore focus on the most important details of your business
  • Makes for an Important KPI: NPS is a useful metric that your management can use for measuring growth, retention, and success.

How Do You Calculate NPS?

Calculating your NPS is rather straightforward. All you need to do is ask your customers how likely they are to recommend your business on a scale of 1 to 10. Then, you can add up the values and divide them by the number of participants who responded to your survey and multiply by a hundred to get a percentage value.

Want to know more?

What Is A Good NPS?

A good NPS is one that allows you to grow your business. Here are some perspectives you should consider to determine if you have a good NPS.

  1. Compare Yourself to Your Niche

The easiest way to determine if you have a good NPS is by comparing yourself to your niche. Keep in mind that NPS varies depending on the type of audience you cater to and the industry you operate in. For instance, department stores and specialty stores receive the highest NPS scores as they provide a branded experience. As for cable services and internet providers, they have a lower NPS score as their service is not branded or as personalized. Hence, it is crucial that you compare your NPS to your industry.

  1. Keep an Eye on NPS Benchmark for SaaS

Now, it is important that you also consider SaaS NPS scores as a whole to understand where your score stands. Generally, the SaaS industry has an average NPS of 31. Therefore, if you have a score of 50, it would be considered to be great.

  1. How to Improve Your NPS Score?

Once you know your NPS score, you must work to improve it. It can help you convert more customers into brand promoters. Here are some tips that you should consider.

  • Provide a Better Customer Experience: SaaS businesses need to focus on improving customer experience to gain a higher NPS score. Being customer-centric is necessary to stand out.
  • Deliver Amazing Customer Support: Customer support is the backbone of every business. It can either make or break your business. Hence, you must consistently deliver excellent customer support.
  • Utilize Customer Feedback: Take advantage of the customer feedback you obtain while calculating your NPS score to improve your business. Ask the right questions from customers to gain a clear view of how you can succeed.
  • Segment Customers: Finally, you also need to segment customers for better planning. Create customized strategies for addressing each segment.
  • FAQ

  1. How to Have Good Customer Support?

Improving customer support is important for obtaining a good NPS. You can improve customer support by quickly answering calls, responding to support tickets, and dealing with live chat queries.

  1. How to Segment Customers and Adapt Your Strategy for Each Segment?

You can easily segment your customers based on how they rate you. Then, you can create a segment that caters to each group, such as detractors, passives, and promoters. The more you break down your customers, the better you would be at targeting them.

  1. NPS Limitations

  • NPS system is not specific enough. You still need to monitor other metrics.
  • You need to plan action with the information. Otherwise, it is of no use to your business.
  • Few people are going to answer your survey.

Now that you know more about NPS, all you have to do is do everything you can to improve long-term customer satisfaction and engagement. Do not try to achieve a particular score but find the one that matches your activity to allow you to grow.

*Source online : Forrester Consulting, April 2018, “The Business Impact of Investing In Experience”, ,

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