The question of what is a good NPS score is popular among brands who value customer experience.
A Net Promoter Score®, or NPS, has become a necessary customer experience metric. In fact, an estimated 65% of companies track NPS scores, making it the most coveted customer experience metric measured by companies.
Your NPS score is based on customers responding to one question: “How likely are you to recommend us to a friend or colleague?”
The responses will be a key indicator of customer loyalty and overall customer satisfaction.
But, again, what is a good NPS score? Today you’ll get the answer. I’ll explain how NPS is calculated and give you benchmarks to help determine whether your NPS score is good or bad. In addition, you’ll get some tips to make the most out of your NPS score.
Let’s get started.
How to calculate your NPS score
To answer, “What is a good NPS score?” you have to first understand how the metric is calculated.
Respondents rank their likelihood on a scale of 0 to 10—0 being highly unlikely, 10 being extremely likely. You can also add an option for the respondent to leave a comment and explain his or her rating. See below an example of an NPS survey created with GetFeedback.
Based on the score, customers are grouped into one of three categories: Detractors, Passives, or Promoters.
Any customer responding 0-6 on the sliding scale is considered a Detractor. Customers providing a score of 7 to 8 are considered Passives, and persons with scores of 9 or 10 are considered Promoters (see below for reference).
To calculate the NPS score, you subtract the percentage of Detractors from the percentage of Promoters ( percent Promoters – percent Detractors = NPS).
Most of the time, the math is done for you by the customer feedback solution. If you use GetFeedback, for example, we provide a visual histogram like this one that computes your overall NPS score:
What is a good NPS score?
Asking customers to participate in an NPS survey and computing the statistics is just part of the equation. Once you have an actual number, how do you know if it’s good or not? This brings us to the ultimate question, “What is a good NPS score?”
As you might expect, there isn’t a simple answer to this question. NPS scores can vary widely, and depend on a number of factors including industry, location, and method of data collection.
However, there are benchmarks you can examine to get a better understanding of your score.
In general, an NPS score that’s 0 or below should tell you that your company needs serious improvement. Scores between 0 to 30 are typically good, but there’s room for improvement. Scores of 30-70 are classified as great and it typically means you have a lot of happy customers. If your NPS is 70 or higher–kudos–you’re doing excellent with a high number of Promoters in your customer base.
NPS by industry
While the benchmarks above are a good starting point, you should also consider industry benchmarks. NPS scores vary by industry–a lot. For example, a report shows the average NPS score for airlines is 44, while the average NPS score for health insurance companies is 13. Comparing your own score with competitors in your industry is a good starting point to see how much (if at all) you have to improve.
To understand what is a good NPS score for your company, you should examine industry data. The chart below from Satmetrix provides industry benchmarks.
Going beyond the NPS score
While many want to classify an NPS score as good or bad, it’s important to remember that this metric is one piece of your customer experience puzzle. Brands have to think beyond the score to affect real change. To do, here are some suggestions:
Set your own benchmark
While general and industry benchmarks can give you an idea of how your NPS score compares to others, it’s best to set your own benchmark. How? Use your first NPS score as your baseline, and try to improve it.
Establish an organization-wide NPS score goal and create a list of ways you’ll accomplish it. Be specific as you can. For example, your goal might be to increase your NPS score by 15 points by streamlining your online checkout process and adding a live chat feature to answer customer questions immediately.
The idea here is to set your own benchmarks, and in time, you’ll know what a good NPS score is for your particular company.
Ask for qualitative customer feedback
An NPS survey should have two questions. The first asks about the customer’s likelihood to refer your company, but the second should ask for feedback. Ask an open-ended question like, “How can we improve your customer experience?” You want specifics that can help you create a streamlined experience that delights your customers.
Act on the customer feedback
It might go without saying, but once you have customer feedback–act on it. Some companies are great at measuring NPS and asking customers to provide suggestions but fall short of analyzing the data and taking steps towards improvement.
The data is only useful if you listen to your customers and implement the changes they suggest. Here’s a great article on how to take action on your NPS data.
Tell customers about the changes
When you make changes based on customer feedback, it’s not something you should do quietly. You want customers to know that you value their feedback and listened to their concerns.
The email below is a great example of a marketing campaign that highlights new features to a service desk as a result of customer feedback.
Track NPS at different touch points
You should ask customers about their likelihood to refer your business at various touch points in the customer journey. You can ask based on actions or a specific timeframe. For example, launch an NPS survey immediately after a customer makes a purchase, or during regular intervals, like once a year.
Gathering NPS data is an ongoing effort, but to get an accurate reading you should vary the timing and segments of your NPS surveys.
Check Out Our New Net Promoter Score (NPS) Guide
Wrap up on what is a good NPS score
It’s natural to wonder what a good NPS score is, but this metric is meant to be more reflective than competitive. In other words, brands should use NPS internally to reflect on their customer experience and work to improve it, rather than get caught up in industry comparisons.
NPS surveys tell brands how customers are feeling, and give companies a chance to listen and act on valuable feedback. If you’re measuring and acting on customer feedback, you’ll likely see a good NPS score as a result.
Learn how GetFeedback can help you measure your NPS score and create the best customer experience—start your free trial today.