What is NPS (Net Promoter Score)? — Definition for DTC operators

Definition

NPS is the score derived from asking 'how likely are you to recommend this brand to a friend' on a 0-10 scale. Promoters (9-10) minus Detractors (0-6) equals NPS, ignoring Passives (7-8). It ranges from -100 to +100, with 50+ considered excellent.

How operators actually use it

DTC brands collect NPS via post-purchase email at day 14-30, when the customer has used the product. Healthy brands report 40-60 NPS; cult brands report 70+. NPS correlates with repeat purchase rate and word-of-mouth referral, making it a leading indicator of retention curves. Operators use NPS responses as the input to qualitative product-improvement work and as the filter for which customers to invite into a referral or affiliate program.

Common pitfalls and honest-cost notes

NPS is sensitive to survey timing and population — measuring after a free product is given biases up; measuring during a shipping delay biases down. Lock the methodology and survey the same cohort at the same days-since-purchase every period. Also: NPS without follow-up qualitative analysis is vanity — the real value is in the comments from detractors and the specific reasons promoters give for recommending.

Related terms

Retention Rate — Retention rate is the percentage of customers from a starting cohort who are still active (have purchased or remained subscribed) at a later point.
Repeat Purchase Rate — Repeat purchase rate (RPR) is the percentage of customers who place a second order within a given window, regardless of product or timing.
Viral Coefficient — Viral coefficient (K-factor) is the number of new customers each existing customer generates through referral.
Churn Rate — Churn rate is the percentage of customers (or subscribers) who stop buying or cancel in a given period, typically measured monthly.
Cohort Analysis — Cohort analysis groups customers by a shared attribute (usually first-order month) and tracks how that group behaves over time — revenue, retention, repeat rate, refund rate.