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How to conduct NPS Survey 1

What is a good Net Promoter Score® ?

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A net promoter scale can help you figure the customer loyalty. An NPS is an effective strategy to measure how much your customers, clients, and employees are satisfied with your company’s service.

The best example of NPS is when you ask your survey respondents, “How likely are you to recommend our service to a friend?” The customers receive a scale of 0-10, ranging from least to most. 

After the result from the survey comes back, you can then segment the result into three groups promoters, passives, and detractors.

The NPS is crucial in fact that it gives you an insight into how receptive and satisfied your customers are with your company’s product or service. The customers have the power to make or break a company’s success. So, tracking how happy they are can be beneficial to strategize the company’s game plan.

In this blog, we’ll explore what is a good NPS score and how it differs as per industry.

What is a good NPS® Score?

A good NPS® score is any score between 0 and 30. Technically, any score above 0 is a good Net Promoter Score®. 

While there aren’t any universal standards for what is a good Net Promoter Score®, companies compare their scores with their competitors to evaluate where they stand. This tells them how satisfied their customers are compared to the competitors. 

If they see their score is lower than their competitors, they can analyze what is driving their competitors as top performers. 

For example, a good NPS® score for the B2B industry is 41, while for the B2C industry is 47. The SaaS industry, on the other hand, has an NPS® score between 31 and 41. 

To better understand how you can determine whether you have a good NPS® score or not in your industry, let’s look at the NPS® trend.

NPS® score by industry 2023

Here is a list of NPS® scores according to the biggest industry according to Statista, 2021. 

  • Health Insurance: 27
  • Banking: 34
  • Brokerage & Investments: 49
  • Home/Contents Insurance: 35
  • Smartphones: 43
  • Tablet /Computers: 56
  • Cable and Satellite TV: Negative 2
  • Internet Software & service: 4
  • Department and Specialty Stores – 56
  • E-commerce: 62
  • Airlines: 45
  • Hotels: 49
  • Retail: 61

Good NPS® score: Examples of top-performing businesses

To get a better understanding, let’s look at companies with the best NPS®®

  1. Tesla: 97
  2. Starbucks: 77
  3. Costco: 74
  4. Amazon: 73
  5. Southwest Airlines: 71
  6. Apple: 61
  7. Vanguard: 65
  8. American Express: 55

Download Now: The Definitive Guide to NPS®

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Good NPS® Score range

NPS® can be low as -100 or high as + 100. So, the question of how to understand how satisfied your customers are and how much you need to improve.

→0 to 30: 

If your score is between 0 and 30, then the service you provide has room for improvement. The range is better than a negative score. 

→Over 30: 

A score above 30 shows that the performance of your company is great. However, some customers are still unhappy with the service or product your company provides. 

→Over 70: 

If your score is above 70, it means that your company is well-liked by your target audience. The customers provide positive feedback and are most likely referring your company to other people. As a result, your company has a higher chance of new leads and more ROI.

However, the NPS® also heavily depends on the niche. A score of -10 may be higher for some niches or others. However, the score definitely leaves a huge room for improvement.

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Calculate Net Promoter Score®

To calculate the obtained NPS® score, you can use the following formulas

%of Promoters – % of Detractor =NPS®                

You can also leverage our free NPS® calculator to get your score in no time.

There are three categories of customers based on how they rate. These are Promoters, Passives, and Detractors, as mentioned above.

  • Promoters: 9 -10

They are customers who love the service or product your company provides. They are of high value because such loyal customers help the company move toward success. These high-ranking customers are also promoting your company in their social circle.

  • Passive: 7-8

The customers of this segment are comparatively satisfied with your company. They may stay with your company. They may go to whichever company provides better service. It is difficult to turn them into loyal customers, but it certainly would benefit the company.

  • Detractors: 0-6

These customers are highly unhappy with your company. They do not positively promote your company. They may ruin the reputation of your company and its service by spreading negative reviews to their peers.

No business can expect to have completely satisfied customers. You cannot change the perspective of every individual detractor. Nor can you completely comprehend their point of view. However, NPS®® gives you an idea of what you may need to change/improve about your company.

Factors influencing good NPS® score

There are many factors that impact an NPS® score. These factors aren’t just industry and preferred communication. Here’s a list of other factors that helps you achieve a good NPS® score. 

01. Customer service →

Customers expect proactive and seamless customer service. Long wait lines or going through dozens of agents to finally get a mediocre solution won’t earn you a good Net Promoter Score®. 

Customers who have positive experiences with a customer service team are likely to recommend your brand to others. Thus leading to a high NPS® score.  

02. Product & service quality →

A great customer support team cannot save a bad product or service. If the products are low quality and don’t offer value to customers’ life, customers won’t come back to do business with you. 

You can’t assume that the first time a customer buys your product is the baseline for good business growth. The first purchase depends on your marketing. If you don’t deliver on what you promised, customers will not recommend or repurchase from your brand. 

03. Brand reputation →

A brand with a good reputation in the market generally achieves a good NPS® score. When you deliver high-quality products, seamless customer service, and exceptional customer experience, you are likely to retain and acquire customers. 

Prioritizing your customers and becoming customer-centric will likely help you score higher. For example, the retail industry centers around customer experience and support. This yields them an excellent score of 61 NPS®. 

04. Price →

High prices for low-quality products will lower your brand reputation and your NPS® score. 

Customers will pay a higher price for a product that meets their expectations and helps them in their life. 

If a customer feels you have charged them more than the value the product delivers, they are likely to give you low scores. 

05. Location →

Location can also impact your NPS® score. Not only the location of your business but also that of your customers if you are collecting data from an international audience. 

For example, mid-range NPS® scores are more common in Europe and Asia than in North America, where audiences give higher scores.  It is mainly because of cultural differences. 

So, when you are comparing NPS® scores locally or internationally, don’t focus too much on the numbers. 

Additional read: Top strategies to reduce customer churn and improve NPS®.

Benchmark of NPS®

According to the global benchmark with an NPS® range of -100 to +100, a score above 0 is good for any company. It means that you have loyal customers.

– Compare with other companies: 

For better awareness of the success of your company’s strategies, you may try assessing your competitor’s NPS® and comparing those with your NPS®®. 

– Compare with the different regions: 

The scores are also affected by the geographic market. For instance, you may find that customers in your region tend to stay in the mid-section of the scale and not outright go for a high or low score. Customers from another region may stick to the lower end of the scale despite how satisfied they are. NPS® may vary dramatically as it is subjective.

– Use your NPS® to compare internal performance: 

The better way is to thoroughly study your company’s past NPS® records and compare them with the more recent report. If there is a decrease in the score, then you can positively identify the issue and prepare for improvement. On the other hand, if the NPS® increases, then your company is doing a great job of keeping your customers satisfied.

NPS® is only a means to give you a clear picture of where your company needs improvement. Ultimately what your company needs to do is to analyze and listen to your customer’s feedback. Then take positive action towards the main goal, which is customer service.

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Wrapping up;

NPS® can be a guiding metric if you use it wisely. You need to gather the score and benchmark it in regular intervals to have a clear view of where you stand. It can help you identify opportunities to improve and achieve a good NPS® score. 

Compare your NPS® score with the industry standard and also with your previous scores. It will help you see where you stand and also help you understand where you need to focus on driving the score up. 

Invest in a tool that enables you to create an effective NPS® survey to gather both the score and the reason for the score. Voxco enables you to customize the open-end question as per the three segments. You can further leverage the NPS® dashboard to conduct text and sentiment analysis to extract meaningful insights.

FAQs

1. What is a good NPS® score?

A score above 0 NPS® is a good score in any industry. However, a good NPS® score is different for different industries. 

In general, a score between 0 and 30 is good, above 30 is great, and above 50 is excellent. 

2. What is the importance of NPS® benchmarking?

Benchmarking your NPS® score helps you identify where you lack. Comparing it with competitors in the industry enables you to see what they are doing better. This allows you to innovate ways in which you can improve your performance. 

While internal benchmarking helps you see if the changes you made had any impact on the score. If so, which changes led to what impact on customer experience? 

Benchmarking NPS® can help you contextualize your CX plan and improve the score. 

3. How to improve NPS® score?

You can follow these steps to get a good NPS® score: 

  • Gather unfiltered customer feedback. 
  • Identify the root cause for lower NPS®.
  • Close the loop on customer feedback.
  • Develop a customer support strategy. 

4. What is a high NPS® score?

Any score above 50 is a high NPS® score. This range of scores puts your company as a top performer. It indicates that your customers are extremely satisfied and loyal to your brand.

Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

Voxco is trusted by Top 50 Market Research firms, Global Brands & Universities in 40 countries. Voxco offers full omnichannel capability including CATI, Predictive Dialler, Online surveys, offline CAPI, and Panel Management.

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