What does NPS stand for?
NPS stands for Net Promoter Score. It is a customer loyalty metric built on one survey question, measured on a 0-10 scale, with respondents grouped into Promoters, Passives, and Detractors. The score itself is calculated by subtracting the percent of Detractors from the percent of Promoters.
How is NPS calculated?
Take the share of respondents who scored 9 or 10 (Promoters) as a percent of total responses. Take the share who scored 0 through 6 (Detractors) as a percent of the same total. Subtract Detractor percent from Promoter percent. Passives (7 or 8) count in the denominator but not the subtraction. The result lands between negative one hundred and positive one hundred.
What is a good NPS score?
Any score above zero means more Promoters than Detractors, which is a basic bar to clear. Beyond that, "good" depends on industry. Published benchmarks put software and SaaS around thirty, retail banking around forty, and industries like airlines across a wider spread. The most useful comparison is against your own baseline from prior waves, measured the same way.
What is the difference between NPS and CSAT?
NPS measures loyalty with a likelihood-to-recommend question, usually at the relationship level. CSAT (customer satisfaction) measures satisfaction with a specific transaction, usually with a "how satisfied were you" prompt. NPS is a broader loyalty signal. CSAT is a tighter operational signal. Mature programs use both: CSAT for day-to-day tuning, NPS for relationship-level reads.
What is transactional NPS versus relational NPS?
Transactional NPS (tNPS) fires after a specific event like onboarding, a support resolution, or a renewal, and reflects how that event landed. Relational NPS (rNPS) goes out on a scheduled cadence (quarterly, biannually, annually) and reflects the overall relationship. Mature programs run both: tNPS for operational feedback, rNPS for leadership reads.
Is NPS still useful given the criticisms?
Yes, when used as one gauge instead of the only gauge. The common critiques (single-metric reduction, cultural bias, timing sensitivity, incentive gaming) are real, but each has a mitigation: pair the score with a follow-up, segment by region, standardize the sample frame, keep measurement independent of the measured team. The score misleads only when a program ignores those practices.
How does a CRM help run NPS?
A CRM makes NPS actionable instead of just measurable. Responses attach to the customer record, so the account team sees score and verbatim alongside deals and activities. Detractors auto-create cases with SLAs. Passives drop into nurture. Promoters get flagged for advocacy. The score, the follow-up, and the human response all live on one timeline.
How often should we run NPS surveys?
Relational NPS is typically quarterly or biannual, which gives enough signal to track trends without survey fatigue. Transactional NPS fires on each defined event, so cadence matches event volume. Response rates fall fast when customers get the same survey too often, so most programs stagger samples and cap how many surveys any one customer receives.