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

NPS for Product Managers

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.


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How to calculate NPS

How to calculate NPS

  • 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.


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What do we want from promoters?

Promoters are long-term customers, but they’re much more than that. You can rely on promoters for word-of-mouth marketing. They’ll be the ones most likely to tell their friends and family about your product and recommend it to them.

They’re also very useful for your marketing team, engaging with your content and getting involved in user-generated content strategies. They can also be more easily incentivised by referral schemes, and they will be more willing to leave you with constructive feedback in surveys.


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What is NPS actually good for?

Your NPS score opens the door to more conversations with your customers about your product. Those who are willing to answer an NPS survey may be open to contacting you further on what could make them happier.

NPS also gives you your promoters, the people who will act as cheerleaders for your brand. They’ll help you build growth loops into your product, and they will be incentivized by marketing and referral schemes.


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