At a Glance
The Net Promoter Score (NPS) is a metric for measuring customer loyalty and willingness to recommend. Customers are asked on a scale of 0-10 how likely they would be to recommend a company. The NPS ranges from -100 to +100 and is one of the most widely used KPIs in Customer Success. For SMEs, it offers a simple yet powerful method to systematically measure customer satisfaction.
1. Definition: What is the Net Promoter Score?
The Net Promoter Score (NPS) was developed by Fred Reichheld in 2003 and is based on a single question: “How likely are you to recommend our company to a friend or colleague?” The answer is given on a scale of 0 (very unlikely) to 10 (extremely likely).
The NPS has established itself worldwide as a standard metric for customer loyalty because it is easy to collect, simple to understand, and comparable across industries. It has been proven to correlate with business growth: companies with a high NPS grow faster on average than their competitors.
As a KPI in Customer Success, NPS is particularly valuable because it not only measures current satisfaction but also the willingness to actively recommend – a strong indicator of true customer loyalty and future purchasing behavior.
2. Calculating NPS: Formula and Categories
Based on their rating, customers are divided into three groups:
- Promoters (9-10): Enthusiastic customers who actively recommend and are open to upselling.
- Passives (7-8): Satisfied but not enthusiastic customers. They are loyal as long as no better offer comes along.
- Detractors (0-6): Dissatisfied customers with a high churn risk, who may speak negatively about your company.
Formula: NPS = % Promoters − % Detractors
Example: 60% Promoters, 20% Passives, 20% Detractors → NPS = 60 − 20 = +40
The score can range from -100 (all customers are Detractors) to +100 (all customers are Promoters).
3. Interpreting NPS: What is a Good Score?
The evaluation of NPS depends on the industry, but as a rough guide:
- Below 0: Critical – more dissatisfied than enthusiastic customers. Immediate action required.
- 0-30: Good – solid foundation, but potential for improvement in Customer Experience.
- 30-70: Very good – strong customer loyalty and active recommendations.
- Above 70: Excellent – World-class customer experience, strong organic growth.
More important than the absolute value is the trend over time: Is your NPS improving quarterly? And: Use the open follow-up question (“What is the main reason for your rating?”) to understand the drivers behind the score.
4. Implementing NPS in Your Company
4.1 Transactional vs. Relational NPS
Transactional NPS: Measured after a specific touchpoint (after purchase, after a support call, after a workshop). Measures the quality of individual touchpoints.
Relational NPS: Collected regularly (quarterly or semi-annually), independent of specific interactions. Measures the overall customer relationship.
4.2 Closed-Loop Feedback
NPS only unfolds its full value through the Closed Loop: every rating is followed up promptly. Detractors receive a personal call back within 48 hours, and Promoters are activated for referral programs. This transforms a metric into an action system.
4.3 NPS as an Early Warning System
Declining NPS values in individual customer segments are an early warning sign of increasing churn. In combination with the Health Score from Customer Success, NPS enables proactive countermeasures.
5. Practical Application: NPS in DACH Mid-sized Businesses
For mid-sized companies, NPS offers particular advantages:
- Simple Implementation: A single question, no elaborate questionnaire – ideal for SMEs with limited resources.
- Comparability: Industry benchmarks allow for classification within the competitive environment.
- Action-oriented: The open follow-up question provides qualitative feedback that directly feeds into improvements.
Practical Example: An innovation consultancy sends an NPS survey after each completed workshop. Promoters are asked for a Google review and LinkedIn recommendation. Detractors receive a personal conversation with the managing director. Result: NPS of +65 and 40% of new customers come through referrals.
6. Step-by-Step: Setting Up an NPS Program
- Choose a method: Decide between transactional and relational NPS (or both). For starters, relational NPS, collected quarterly, is recommended.
- Select a tool: From simple Google Forms surveys to specialized tools (Typeform, Delighted, Retently) – choose according to your company size.
- Formulate a follow-up question: Always supplement the NPS question with an open question: “What is the main reason for your rating?”
- Set up Closed Loop: Define processes for follow-up – who contacts Detractors? Who activates Promoters?
- Collect regularly: Consistent collection rhythms enable trend analyses. Avoid survey fatigue – maximum quarterly.
- Communicate results: Share the NPS and the derived measures with your team. Make customer satisfaction a team task.
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7. Frequently Asked Questions
What is a good NPS for B2B companies?
In the B2B sector, an NPS of +30 to +50 is considered very good, and above +50 as excellent. B2B companies tend to have higher NPS values than B2C, as customer relationships are more personal and expectations are more clearly defined. More important than the absolute value is the trend: a rising NPS over several quarters indicates sustainable improvement.
How often should NPS be measured?
For relational NPS, quarterly collection is recommended. More frequent collection can lead to survey fatigue, while less frequent makes trends difficult to identify. Transactional NPS is measured directly after relevant interactions – for example, after a completed project or a support call.
Is NPS sufficient as the sole customer satisfaction metric?
NPS is an excellent starting point, but it should not be the only metric. Supplement it with operational KPIs such as churn rate, customer lifetime value, and retention rate. The open follow-up question in NPS provides qualitative feedback that contextualizes quantitative data and highlights concrete areas for action.