Net Promoter Score

Understanding the Net Promoter Score (NPS) Explained

Understanding the Net Promoter Score (NPS) Explained

What is Net Promoter Score? (NPS)

As the creators of a cutting-edge NPS measurement tool, Jimo brings unparalleled expertise to unraveling this concept. Being a SaaS company, we understand the intricacies of NPS and its significance in assessing customer loyalty. Join us as we delve into the depths of NPS, its implications for your business, and how our tool can streamline your customer feedback process.

Understanding the concept of Net Promoter Score

Deciphering the Net Promoter Score

One tool to gauge this essential factor is the Net Promoter Score (NPS).

NPS is a management tool designed to provide a measurement of customer satisfaction and loyalty. It aims to predict business growth and customer behaviour by asking one simple question, "On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?"

The Mechanics of Net Promoter Score

The Net Promoter Score does not merely measure customer satisfaction but classifies your customers into three categories based on their responses:

  • Promoters (score 9-10): These are your satisfied and loyal customers who will keep buying and referring others, driving your growth.

  • Passives (score 7-8): These customers are satisfied but indifferent and can easily switch to competitors.

  • Detractors (score 0-6): These are unsatisfied customers who can damage your brand and impede growth through negative word-of-mouth.

The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. The final score ranges from -100 (if all customers are detractors) to 100 (if all customers are promoters). High scores indicate greater customer satisfaction and loyalty.

Net Promoter Score and User Onboarding

In SaaS operations, combining Net Promoter Score with User Onboarding strategies can yield powerful results. User onboarding refers to the process of guiding users to successfully navigate and use your software. It is a pivotal element that decides a user's first impression of your product.


Impressing users during the onboarding stage can turn them into promoters, while a negative experience risks churning them into detractors. Therefore, applying the Net Promoter Score methodology in user onboarding can help align your product with user expectations, improve user experience, and enhance customer retention.

Utilising Net Promoter Score for Business Growth

Net Promoter Score provides businesses with critical insights into customer loyalty and satisfaction. It helps identify areas for improvement and detect potential issues before they escalate. An effective strategy to utilise NPS is by regularly conducting surveys and working on feedback to improve user experience.


The Net Promoter Score aids businesses in gaining a competitive edge by identifying the promoters and detractors of your product. By actively working on the feedback, companies can create a superior user experience, drive customer loyalty and fuel growth.

Applications and limitations of Net Promoter Score

Understanding the Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a pragmatic metric used by companies and businesses to measure the loyalty of customers towards their services or products. The concept was first introduced by Fred Reichheld in 2003 and it is an essential tool to quantify customer satisfaction levels within a SaaS environment. Our in-app surveys and NPS tool can help you get insights from your users.


NPS is calculated by asking customers one simple question: "On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?" Based on the responses, customers are then categorized into three groups: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6).

Applications of the Net Promoter Score

The Net Promoter Score serves multiple uses for a business. Some of the prominent use cases are:

  • Evaluating customer satisfaction: It provides a snapshot of how satisfied customers are with a company's products or services.

  • Identifying areas for improvement: By analyzing the responses and feedback from the customers, companies can identify key areas where they can improve.

  • Comparing performance with competitors: NPS can be employed to compare and contrast a company's performance against those of its competitors.

  • Predicting business growth: A high NPS is indicative of more referrals and hence, potential business growth.

Limitations of the Net Promoter Score

Though NPS holds great significance in tracking customer sentiment, it is also marked by several limitations:

  • Deceptive simplicity: The simplicity of NPS can sometimes be misleading as it ignores critical components like customer behavior, expectations, or specific concerns.

  • Neglect of neutral customers: The score divides customers into three camps, ignoring those reticent customers who might be indifferent.

  • Dependence on cultural factors: The perceptions about scores can differ from one geographical location to another, affecting the relative ratings.

While the Net Promoter Score serves as an effective tool to gauge customer loyalty and satisfaction, it is pivotal to understand that it is merely a snapshot in time. It serves the best purpose when used in conjunction with other metrics and tools, ensuring an understanding of customer opinions and facilitating strategies for enhanced user onboarding and customer retention.

Insights

Want Insights from Jimo sent straight to your inbox?

Join ever-growing community of 100+ product teams who have harnessed the power of Jimo Insights.

By clicking send, you’ll receive Product Insight updates from Jimo. You always have the choice to unsubscribe from every email you receive.

Insights

Want Insights from Jimo sent straight to your inbox?

Join ever-growing community of 100+ product teams who have harnessed the power of Jimo Insights.

By clicking send, you’ll receive Product Insight updates from Jimo. You always have the choice to unsubscribe from every email you receive.

Insights

Want Insights from Jimo sent straight to your inbox?

Join ever-growing community of 100+ product teams who have harnessed the power of Jimo Insights.

By clicking send, you’ll receive Product Insight updates from Jimo. You always have the choice to unsubscribe from every email you receive.

Insights

Want Insights from Jimo sent straight to your inbox?

Join ever-growing community of 100+ product teams who have harnessed the power of Jimo Insights.

By clicking send, you’ll receive Product Insight updates from Jimo. You always have the choice to unsubscribe from every email you receive.