Net Promoter Score (NPS)
Net Promoter Score (NPS) measures customer loyalty by asking one simple question: "How likely are you to recommend us to a friend?" Scores range from 0-10. Detractors (0-6) will likely churn and criticize you. Passives (7-8) are satisfied but won't advocate. Promoters (9-10) will recommend and stay. NPS = (Promoters - Detractors) / Total.
What Is Net Promoter Score?
NPS is a single-metric measure of customer health. Unlike satisfaction surveys with 20 questions, NPS requires one question: recommendation likelihood. This simplicity makes it trackable across time and comparable across companies. Plura's conversation sentiment tracking gives real-time NPS signals: if a customer sounds frustrated, their NPS is probably low; if they sound delighted, it's high.
NPS Benchmarks by Industry
0-30 is poor, 30-50 is acceptable, 50-70 is good, 70+ is world-class. Software companies average 40-50. Compare against competitors, not absolute numbers.
Why NPS Matters
NPS predicts churn and revenue growth. Customers with high NPS expand, renew, and refer. Customers with low NPS leave for competitors. Even improving NPS by 10 points can dramatically impact retention and growth. Use NPS trends to identify problems before customers leave.
FAQs related to
Net Promoter Score (NPS)
When should I measure NPS?
After key moments in the journey: after purchase, after support interaction, after 30 days of usage, at renewal time. Quarterly pulse surveys also work. More frequent = faster detection of sentiment changes.
What should I do if NPS is declining?
Investigate immediately. Interview detractors to understand why they'd not recommend you. Common reasons: product issues, poor support, competitor advantages. Address root causes, not symptoms.
Is NPS predictive of churn?
Yes. Detractors (0-6) churn at 2-3x the rate of promoters (9-10). But NPS alone isn't sufficient—combine it with usage metrics and support tickets for complete churn prediction.
Should I follow up with detractors?
Always. Detractors are in pain. If you fix their problem, they might become promoters. A customer turned from detractor to promoter becomes even more loyal than someone never dissatisfied.
Can NPS improve with better communication?
Often yes. If customers don't understand your product's value, they give low scores. Better training, onboarding, and support communication frequently improve NPS 10-20 points.