NPS (Net Promoter Score)

The share of survey respondents scoring 9–10 minus the share scoring 0–6 on recommendation intent.

When to use this

Use NPS to track recommendation intent over time with consistent sampling. Follow up on responses to learn what customers value or want changed.

Limits

Do not use NPS alone to choose a retention strategy or predict churn. Small samples carry more uncertainty. NPS measures recommendation intent, which differs from satisfaction.

Inputs

Survey responses on a 0-10 scale to "How likely are you to recommend us?"
Segmentation tags: plan tier, account size, tenure. These help compare responses from different groups.
Account ACV (optional but recommended): so you can weight detractors by dollar risk, not headcount.

Classification:

Score	Bucket	What it means
9-10	Promoter	Scored 9–10 on recommendation intent
7-8	Passive	Scored 7–8
0-6	Detractor	Scored 0–6

The math

NPS = % Promoters - % Detractors

Passives count toward the denominator but not the score. The range is -100 to +100. Anything positive is more promoters than detractors. Compare results using similar survey methods and customer groups.

A worked example

A B2B SaaS surveys 500 customers. Results: 220 promoters (44%), 180 passives (36%), 100 detractors (20%).

NPS = 44 - 20 = 24

If those 100 detractors each have an average annual contract value of $12k, they represent $1.2M in annual contract value. That is the value associated with the group, not a forecast of losses. NPS alone does not tell you how many will churn.

In PM Toolkit

The calculator includes revenue-impact and churn-risk estimates alongside NPS. Those estimates use assumptions and should not be read as measured churn probabilities or expected losses for your customers.

Common mistakes

Reading a small move as a confirmed change. Uncertainty depends on sample size, response mix, and survey design.
Surveying only active users. This can miss customers who stopped using the product.
Changing the survey context. Compare similar segments, timing, and questions; consider seasonality.
Treating labels as observed behavior. A detractor score does not establish that someone discourages others, and a passive score does not establish satisfaction.