NPS for Product Managers and How to Use it (Properly!)

NPS stands for net promoter score, and it is used by many companies to map out how well their products are doing with their current customers.

• Carry out a survey of your existing customers, asking them to rate your product out of 10.
• Split them up into three groups, depending on where they fall on the scale.
• Detractors: Scoring 1–6, these customers either actively dislike or have some significant issues with your product, and they will probably tell others to avoid it.
• Passives: Scoring 7–8, these customers think your product is alright and continue to use it, but they would easily switch to an alternative that better solves their problem.
• Promoters: the holy grail of customers. Scoring 9–10, these customers are loyal and would probably recommend your product to others.
• Calculate your score by subtracting the percentage of detractors from the number of promoters.
• NPS is expressed as an absolute number between -100 and 100. For example, 20% detractors and 25% promoters leaves you with an NPS of 5.
• An NPS above 0 is generally considered a “good” NPS score.