Unless you’ve been living under a rock, you’ve likely heard of Net Promoter Score (NPS)—and for good reason. NPS is the most popular way to measure customer loyalty, widely adopted across industries for its simplicity, cost-effectiveness, and ability to benchmark performance against competitors. But what exactly is it, and why does it matter to SaaS or digital products?
At its core, NPS is a single-question metric designed to gauge how likely your customers are to recommend your product or service to others. The question is straightforward: “On a scale of 0 to 10, how likely are you to recommend [your product/company] to a friend or colleague?” Based on their responses, customers are grouped into three segment and a single NPS score is deduced using a standarized calculation.
• Promoters (9-10): These are your biggest fans—loyal customers who are enthusiastic about your product and likely to spread the word.
• Passives (7-8): These folks are satisfied but not overly excited. They’re unlikely to evangelize your brand and could be swayed by competitors.
• Detractors (0-6): These are unhappy customers who might not only churn but also discourage others from choosing your product.
The NPS score itself is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The result is a number that can range from -100 (all Detractors) to +100 (all Promoters), giving you a clear, digestible snapshot of customer sentiment.
So why is NPS such a big deal? Beyond its ease of use and low cost, it’s a powerful indicator of business health. Studies have shown a strong correlation between high NPS scores and revenue growth, making it a common core KPI for SaaS and digital product companies. A solid NPS doesn’t just reflect happy customers—it signals a foundation for sustainable growth, driven by word-of-mouth advocacy and customer retention. For teams like yours, it’s a metric that bridges the gap between user experience and bottom-line impact.
After calculating your Net Promoter Score (NPS), you are likely wondering “Is this a good NPS score?” The answer hinges on how you evaluate it, with two main approaches to consider: the absolute method and the relative method. Each offers a unique perspective on your score, helping your team make sense of customer loyalty and its implications for your SaaS or digital product.
This method judges your NPS as a standalone number, no context required. Here’s what it tells you:
Above 0 is "good": More Promoters than Detractors means you’re in positive territory.
Above 20 is favorable: A solid sign of customer satisfaction.
Above 50 is exceptional: You’ve got a fiercely loyal user base—rare and impressive.
Why it matters: For SaaS and digital products, aiming for 30-40 is a common target tied to retention and growth.
The catch: It ignores industry differences, so a “good” score might not tell the full story.
This approach compares your NPS to industry benchmarks or competitors for a reality check. Key points include:
Industry matters: A good score varies by sector—SaaS averages 30-40, while telecom might sit at 10.
Competitive edge: If your NPS is 35 but rivals hit 50, you’ve got work to do.
Data-driven insight: Use industry reports to see where you stack up.
Why it matters: In fast-paced digital markets, staying ahead of peers is critical for growth.
The catch: It requires access to reliable benchmarks, which can shift over time.
So, what’s a good NPS for your team? It’s a mix of both worlds. The absolute method gives you a quick pulse check, while the relative method shows how you measure up in the wild. For most SaaS and digital product companies, tracking your raw score alongside industry standards is the smartest way to turn NPS into a growth lever.
The real power of Net Promoter Score (NPS) lies not just in the final number, but in the segments behind it: Promoters, Passives, and Detractors. Analyzing them effectively can help you pinpoint what’s working, what’s at risk, and where to focus your efforts. Here’s how to break it down.
These are your raving fans, the customers who love your product enough to shout it from the rooftops. Analyzing this segment is about amplifying their impact:
Look for patterns: Dig into their feedback—via follow-up questions or usage data—to identify what delights them. Is it your UI, customer support, or a killer feature?
Leverage them: Encourage Promoters to leave reviews, join referral programs, or share testimonials. Their advocacy drives organic growth.
Track trends: If Promoter numbers dip, it’s a red flag that something core to your value proposition might be slipping.
Passives are the fence-sitters—satisfied but not wowed. They’re not detracting, but they’re not fueling growth either. Analysis here is about conversion:
Uncover the “why”: Survey them with a follow-up like, “What would move you to a 9 or 10?” Maybe it’s a missing feature or inconsistent onboarding.
Monitor churn risk: Passives are vulnerable to competitors. Cross-reference their scores with usage metrics to see if engagement is waning.
Prioritize upgrades: Small tweaks—like better in-app guidance—can nudge them toward Promoter territory.
Detractors are unhappy customers who can hurt your reputation and retention. Analyzing this segment is about damage control and improvement:
Drill into pain points: Review their comments or support tickets. Are they frustrated by bugs, pricing, or poor service?
Act fast: Reach out to resolve issues where possible. Turning a Detractor into a Passive (or higher) can save a relationship and reduce negative word-of-mouth.
Spot systemic issues: If Detractors cluster around a specific problem (e.g., a glitchy update), it’s a signal to escalate to product or engineering teams.
To analyze these segments effectively, combine quantitative data (the scores and segment sizes) with qualitative input (open-ended feedback). Dedicated NPS platforms like Sondar.Ai can help track shifts over time—say, after a feature launch or pricing change. For SaaS and digital product teams, the goal isn’t just to watch the numbers but to tie them to action: double down on what Promoters love, address Passives’ ambivalence, and fix Detractors’ pain. That’s how you turn NPS from a metric into a roadmap.
So, your NPS results are rolling in, and you’ve got feedback from all 3 segments. Where do you start? Here’s the rule of thumb to follow:
Detractors First: These folks are on the brink of churning, so they’re your fire to put out. A quick “What’s driving you nuts?” survey can pinpoint fixable pain points—like a clunky feature or slow load times. Fix these, and you stop the bleed fast.
Passives Next: They’re not mad, but they’re not wowed either. Ask, “What’s missing?” to nudge them toward Promoter territory. Small wins here—like a tweak they’ve hinted at—can turn indifference into loyalty.
Promoters Last: They love you already, so amplify that. A “What’s your favorite part?” survey can uncover what to double down on—or even turn them into advocates.Prioritize by impact: save the sinking ship (Detractors), then nudge the fence-sitters (Passives), and finally fuel your fans (Promoters). It’s a feedback loop that keeps your SaaS humming.
Net Promoter Score (NPS) isn’t a one-size-fits-all tool—it comes in two flavors: transactional NPS (tNPS) and relational NPS (rNPS). Each type serves a distinct purpose, giving your SaaS or digital product team different angles to measure and improve customer loyalty. Understanding when and how to use them can sharpen your insights and keep your users happy. Here’s the breakdown.
Transactional NPS zeros in on specific interactions a customer has with your product or company. It’s all about capturing feedback tied to a moment—like after a support ticket, a purchase, or a feature use.
How it works: You ask the NPS question (“How likely are you to recommend us?”) right after the event, often via in-app pop-ups, email, or chat.
What it measures: Satisfaction with that particular experience—think of it as a pulse check on your onboarding flow, a new release, or your support team’s responsiveness.
Why it’s useful: For SaaS teams, tNPS pinpoints friction in real time. If scores tank after a buggy update, you’ll know fast.
Example: A user finishes a live chat with support and gets a prompt: “Based on this interaction, how likely are you to recommend us?”
Relational NPS takes a step back, measuring overall loyalty and sentiment toward your brand or product over time. It’s less about single moments and more about the big picture.
How it works: Surveys go out periodically—say, quarterly or annually—to a broad sample of your user base, often via email or a scheduled in-app nudge.
What it measures: The strength of your customer relationship, reflecting their cumulative experience with your product’s value, reliability, and support.
Why it’s useful: For digital product companies, rNPS tracks long-term trends and health. A steady climb signals growing loyalty; a drop might hint at churn risks.
Example: Every six months, you ask all active users: “Overall, how likely are you to recommend [product] to a colleague?”
Both tNPS and rNPS have their place. Transactional surveys shine for tactical fixes—improving specific touchpoints like signup or billing. Relational surveys guide strategy, showing how your product holds up over time. Many SaaS teams use a mix: tNPS to catch issues as they happen, and rNPS to keep tabs on the broader loyalty landscape. Together, they give you a fuller view of what keeps users coming back—or pushing them away.
Running a Net Promoter Score (NPS) program isn’t just about asking the question and tallying the score—it’s about making it work for your SaaS or digital product team. Whether you’re using transactional NPS (tNPS), relational NPS (rNPS), or both, these best practices and quick tips will help you gather meaningful data, act on it effectively, and drive customer loyalty.
Keep it timely: For tNPS, send surveys right after key interactions (e.g., support calls or feature use) while the experience is fresh. For rNPS, stick to a consistent cadence—quarterly or biannually—to track trends without spamming users.
Ask the follow-up: Pair the NPS question with an open-ended one like, “What’s the main reason for your score?” This qualitative gold reveals why Promoters love you or why Detractors are mad.
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Segment your data: Break down responses by user type (e.g., free vs. paid), tenure, or product usage. A low score from power users might matter more than one from a one-month trial dropout.
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Close the loop: Follow up with Detractors to address their issues (where feasible) and thank Promoters for their support. It shows you’re listening—and can turn critics into fans.
Integrate with your tools: Pipe NPS data into your CRM, analytics, or product dashboards (e.g., HubSpot, Mixpanel) to connect it with usage patterns and churn metrics.
The goal isn’t to chase a perfect score—it’s to build a system that turns insights into action. For SaaS and digital product teams, that means using NPS to spot friction, delight users, and fuel growth. Start small, iterate, and watch how a few smart habits can transform raw numbers into a loyal user base.