Net Promoter Score (NPS) is a customer loyalty metric that measures how likely your customers are to recommend your product or service to others. It was created by Fred Reichheld and Bain and Company in 2003 and is now one of the most widely used customer experience metrics in both B2B and B2C businesses.
NPS full form: Net Promoter Score. The score is a number between -100 and +100. The higher the score, the more loyal and advocacy-ready your customer base is.
How NPS is calculated: the formula
NPS is calculated from a single survey question: "On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?" Respondents are grouped into three categories:
- Promoters (score 9-10): highly satisfied customers who are likely to recommend you and drive referrals.
- Passives (score 7-8): satisfied but not enthusiastic. They are not loyal advocates and could switch to a competitor.
- Detractors (score 0-6): unhappy customers who are unlikely to recommend you and may actively warn others.
NPS formula: NPS = % Promoters - % Detractors. Passives are excluded from the calculation. If 60% of respondents are Promoters and 20% are Detractors, your NPS = 60 - 20 = 40.
What is a good NPS score in B2B?
B2B SaaS companies typically target NPS above 30, with scores above 50 considered excellent. However, NPS benchmarks vary significantly by industry. For context: scores above 0 are considered positive (you have more promoters than detractors), above 30 is good, above 50 is excellent, and above 70 is world-class. Most established B2B SaaS products score between 25 and 45.
How B2B teams use NPS
- Churn prediction: detractors (score 0-6) are at high churn risk. A follow-up workflow to contact detractors within 24-48 hours can save accounts before they cancel.
- Expansion and upsell identification: promoters (9-10) are prime targets for expansion conversations, case study requests, and referral programs.
- Product feedback loop: the open-text follow-up question ("What is the main reason for your score?") provides unfiltered qualitative insight that complements quantitative product metrics.
- Team performance tracking: some B2B companies track NPS by account manager or customer success manager to identify coaching needs and top performers.
- Investor reporting: NPS is a commonly requested SaaS metric in investor updates and due diligence, alongside ARR, churn rate, and CAC.
NPS survey best practices for B2B
In B2B, always survey the right person: the user of the product, not just the billing contact. Survey quarterly for high-touch accounts and after key milestones (onboarding completion, renewal, major support ticket resolution). Keep the follow-up question open-ended so respondents explain their score in their own words. Close the loop by responding to every detractor personally within 48 hours.
Frequently asked questions
- What is NPS in business?
- NPS stands for Net Promoter Score, a customer loyalty metric that measures how likely customers are to recommend your product or service. Respondents score from 0 to 10; Promoters (9-10) minus Detractors (0-6) gives the NPS, which ranges from -100 to +100. Higher scores indicate more loyal, advocacy-ready customers.
- What is net promoter score meaning?
- Net Promoter Score measures customer loyalty by asking a single question: "How likely are you to recommend us to a friend or colleague?" It classifies respondents as Promoters (9-10), Passives (7-8), or Detractors (0-6). The score = % Promoters minus % Detractors, and tells you the net proportion of customers who are loyal advocates versus those likely to churn or warn others.
- What is a good NPS score?
- An NPS above 0 means you have more promoters than detractors (positive). Above 30 is considered good. Above 50 is excellent. Above 70 is world-class. Most B2B SaaS companies score between 25 and 45. The most useful comparison is against your own previous NPS and against direct industry peers, not global averages.
- How is NPS calculated?
- NPS = % Promoters - % Detractors. Survey customers with the question: "On a scale of 0 to 10, how likely are you to recommend us?" Score 9-10 = Promoters, 7-8 = Passives, 0-6 = Detractors. Passives are excluded. If 55% are Promoters and 15% are Detractors, NPS = 55 - 15 = 40.