Net Promoter Score (NPS)
Net Promoter Score asks customers how likely they are to recommend you on a 0–10 scale; NPS = % promoters (9–10) − % detractors (0–6). It is noisy: with 100 responses the 95% margin of error is typically around ±15 points, so a change between surveys means something only when it is larger than its margin of error. The reasons behind the scores are where the opportunities are.
Calculate NPS with its margin of error
Related terms
A/B test
An experiment that shows two versions to comparable groups at random and compares how each converts, to learn whether a change caused a difference.
Activation rate
The share of new sign-ups who reach the moment they first get real value from a product, such as creating a first project.
Churn rate
The share of customers (or revenue) lost in a period. Monthly customer churn of 5% means losing nearly half your customers in a year.
Customer lifetime value (LTV)
What a customer is worth over their whole relationship with you, usually as gross margin: monthly revenue × margin ÷ monthly churn.
RICE scoring
A prioritization method from Intercom: Reach × Impact × Confidence ÷ Effort, so ideas can be compared on one scale.
Assumption
A belief a solution depends on. If it turns out to be wrong, the solution fails — so the risky ones are worth testing first.