SaaS Net Promoter Score (NPS) Calculator

Think of a SaaS company’s Net Promoter Score (NPS) as a gauge of customer satisfaction and loyalty. If the score is high, it reflects a strong willingness among users to recommend the software to others, indicating high demand and popularity.

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    Gauge Customer Loyalty

    NPS measures the loyalty of customers to a SaaS product.

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    Enhance Product Experience

    NPS guides targeted improvements in the SaaS product or service.

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    Boost Organic Growth

    A high NPS indicates satisfied customers likely to recommend the product.

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SaaS Net Promoter Score (NPS)

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The Net Promoter Score (NPS) is calculated by subtracting the percentage of Detractors from the percentage of Promoters. The score ranges from -100 to +100, where higher scores indicate better customer satisfaction.

How to Calculate SaaS Net Promoter Score (NPS)

To compute your SaaS NPS, follow these steps: 

  1. Gather all the customer survey responses using tools like SurveyMonkey, Typeform, or Qualaroo. Ensure the survey asks: On a scale of 1 to 10, how likely are you to recommend our product or service to a friend or colleague?
  2. Identify your Promoters by finding customers who selected 9 or 10. This data can usually be found at the end of the survey or extracted separately.
  3. Count the number of Promoters. For example, if 500 responses were gathered and 200 selected 9 or 10, you have 200 Promoters.
  4. Calculate the percentage of Promoters. You can use the formula: (number of Promoters / total number of responses) * 100. In our example, this results in 40%.
  5. Identify your Detractors by finding customers who selected 1 to 6.
  6. Count the number of Detractors. If out of 500 responses, 100 selected 1 to 6, you then have 100 Detractors.
  7. Calculate NPS by subtracting the percentage of Detractors from the percentage of Promoters. Here, it would be 40% (Promoters) – 20% (Detractors) = 20% NPS.

SaaS NPS = % Promoters – % Detractors

Understanding SaaS Net Promoter Score (NPS)

Ioana Grigorescu

dezembro 17, 2024

What is Net Promoter Score (NPS)?

In SaaS Net Promoter Score (NPS) measures customer loyalty by inquiring how likely they are to recommend your SaaS product on a scale of 0 to 10.

Responses help categorize customers into three groups:

  • promoters who are likely to help your business grow
  • passive who are neutral
  • detractors who could hinder your growth.

 

The final NPS value is calculated by subtracting the percentage of detractors from the percentage of promoters, giving you a clear picture of overall customer satisfaction and its impact on your business growth.

  • Quantify customer loyalty using SaaS Net Promoter Score (NPS) to predict growth and referrals.

  • Pinpoint areas for improvement by analyzing user feedback through SaaS Net Promoter Score (NPS).

  • Track customer sentiment with SaaS Net Promoter Score (NPS) to adapt and exceed expectations.

Practical Examples of SaaS Net Promoter Score (NPS)

  • Example 1: In a scenario where a SaaS company gathered opinions from 200 customers, they cataloged 120 promoters, 50 passives, and 30 detractors. The NPS calculation is ((120-30)/200)*100 = 45, showcasing strong positive customer sentiment.
  • Example 2: Another case involved a SaaS platform receiving feedback from 500 users, recording 150 promoters, 250 passives, and 100 detractors. The resulting NPS is ((150-100)/500)*100 = 10, indicating that there is considerable room for improvement in customer satisfaction.
  • Example 3: Following a product update, a third company experienced an increase to 300 promoters, while passives kept at 100 and detractors decreased to 50 out of a total of 450 surveyed. This adjustment resulted in an NPS of 55.55, significantly highlighting the update’s positive impact on user satisfaction.
Period Promoters Passives Detractors Total Responses NPS Score Period Over Period Change Percentage Change Trend
Q1 2023 250 100 50 400 50 N/A N/A Starting point
Q2 2023 300 80 40 420 62 12 24% Positive growth
Q3 2023 320 70 30 420 70 8 13% Positive growth

SaaS NPS = (320 / 420) * 100 – (30 / 420) * 100 = 76 – 7 = 69

Different Ways to Calculate SaaS Net Promoter Score (NPS)

  • Transactional NPS: This type takes into account the satisfaction level of a customer only after completing a particular transaction or activity. Useful for identifying sources of frustration and implementing necessary changes. Example: resolution of a support ticket.
  • Relationship NPS: Focuses on the overall relationship between the customer and the SaaS product. Useful for creating trends and understanding general sentiment. Example: quarterly surveys to measure overall satisfaction.
  • Customer Segment NPS: Involves creating subgroups of customers based on distinct characteristics, such as enterprise vs. SMB or free vs. paid users. Helps in identifying the most profitable groups and those needing improvement. Example: focus on reducing churn in low-performing groups.
  • Feature-Specific NPS: Assesses customer satisfaction with a particular feature. Helps in identifying useful features and areas needing improvement. Example: surveys conducted after a user has used a new feature.
  • Competitor Benchmarking NPS: Asks customers about the likelihood of recommending their product as well as their competitors’. Provides a competitive perspective. For example, surveys on satisfaction with their product and their competitors.

How to Improve Your SaaS Net Promoter Score (NPS)

  • Observe customer interactions across various platforms like in-app prompts, emails, and support conversations to gain a comprehensive understanding of their needs and preferences.
  • Review and categorize all customer feedback to identify common themes behind low NPS scores. Focus your efforts on resolving these major issues to enhance the overall customer experience.
  • Personally reach out to customers who provided a low NPS. Understand their concerns and demonstrate your commitment to resolving their issues, potentially turning negative experiences into positive ones.
  • Empower your customer support team with better training and more authority to resolve issues promptly, thereby improving response times and effectiveness.
  • Utilize insights gained from NPS feedback to guide product development. Invest in innovations that align closely with customer needs.
  • Regularly monitor changes in your NPS to detect patterns or recurring issues. Address these immediately to prevent widespread customer dissatisfaction.
  • Acknowledge and publicize improvements in your NPS score to build trust and transparency with your customers.

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