NPS is a standardized measure of customer satisfaction that runs on a scale of -100 to +100. It aims to measure customer satisfaction through responses to one simple question “How likely is it that you would recommend us to a friend or colleague?” Respondents answer on a scale of 0-10, with 0 being “Not at all Likely” and 10 being “Extremely Likely.” Their answers form the NPS for the company or product. NPS is widely adopted by companies to measure their customer happiness – more than two-thirds of the Fortune 1000 use NPS.
At Panopto, we’ve been measuring customer satisfaction in this way since 2015 by surveying every customer account twice per year to understand how we’re doing.
Generally speaking, a Net Promoter Score that is below 0 indicates that a business has a lot of satisfaction issues to address.
A score between 0 and 30 is better, however, there is still room for progress. An NPS higher than 30 indicates that the company has far more happy customers than unhappy ones.
The average NPS for SaaS companies is 30