Your Net Promoter Score
(NPS) tells you about your customers’ experience with your business and measures
their loyalty. It can also predict your company’s potential for growth.
the NPS is much more than just a measurement of customer loyalty. It’s a tool
you can use to see how you rank among your competition. For example, if out of
10 competitor’s you’re at the top, great. But, if you’re below anyone, there’s
always room for improvement.
use the industry comparison to drive your business to the top.
article, we look at comparing your industries’ NPS and what it means for
is a Good NPS Score?
down the score and see what’s actually a good score. First, any score below
zero is a bad score and means you’re in big trouble.
you score between 0 and 30, that’s a good starting point. You’ve got a lot of
room for growth, but things look okay.
score higher than 30 but less than 70, you’re doing terrific. Rest assured that
the majority of your customers are happy. But, does this mean there’s no room
for improvement? No, you do have room to grow.
if your NPS is higher than 70, you knocked it out of the ballpark. You can
assume your highly loyal customers are sharing their good news with all of
their friends, family, and co-workers.
take the example of business A that has a NPS score of 0, and business B that
has a NPS of -30. Is business A doing better than business B? Of course. But,
in the scheme of things, neither of them can rest on those scores.
it is nice for business A to know they’re on top of their competition, it’s not
going to be good enough. Both businesses will want to improve their customer experience
in order to improve their scores.
worth noting, though, that you want to be aware of your industry benchmarks
because there are some industries that could never realistically reach that 70
mark because no one does. For example, the internet service industry average benchmark
Net Promoter Score
want to compare more than simply numbers. You want to compare your score to the
score of your competition.
You can see industry benchmarks, so you know what to compare your number against. Without knowing your industry average as well as the scores of your competition, it’s hard to gauge your standing.
to Satmetrix, your NPS score
can vary not only by industry but by region and customer demographics such as
age, income level, and the number of years they’ve been shopping with you.
accurately measure your score, you want to compare it with your industry and
your direct and indirect competitors.
your score is consistently higher that that of your direct competition, you can
count on business growth.
help you, here are a few industry average benchmarks:
- Major Appliances:
and Tablets: 8
- TV Service:
Where does your business fall in this list? If you fall
under retailers, again, you’ll want to consider things such as your size (don’t
compare yourself directly to the Gap if you’re a small boutique), demographics,
Industry Average Comparison
Let’s say you are a toy manufacturer. If you want to
understand your NPS, you want to first compare it with the average scores in
your industry. Then, compare to your direct competition.
This allows you a better marker than comparing it to what
experts agree is a “good” score.
You also want to consider your market. Are you an online
retailer, or do you sell in a small town or a large metropolis? Some markets
have a more positive image than others, so be sure you are comparing against
the right set.
In addition, just compare yourself to other toy manufacturers.
It doesn’t do you any good to compare yourself to restaurants.
The Regional Comparison
We’ve mentioned that the NPS can vary greatly by industry,
but they also vary by region. You might expect a toy company in New York City
to have a vastly different NPS than a toy company in a small town in North
Different areas of the country are populated by unique
demographics. Make sure you know these differences before looking at industry
Your Survey Channel
Another factor that can affect your NPS is your survey channel.
It pays to know if the channel you are using is similar to that of your competitors.
For example, you might be surveying all customers, but your
competition may only survey customers who’ve purchased in the last six months.
You’ll find this can affect the data.
In addition, how you conduct your survey can change data,
too. Test different channels – email, SMS, on your website, through social media,
Try to conduct your NPS survey through the same channel as the
competitor you want to benchmark so you’ll have something static to base your results
compare your industries’ Net
Promoter Score (NPS), you want to keep one thing top of mind: your “good”
number is the number that’s better than your previous score.
businesses, this is the most important benchmark. Over the course of your NPS
surveys, you want to ensure continual improvement.
if you survey customers four times this year, make sure you increase each time.
If this is happening, you’re doing great. You can then look at industry
benchmarks and comparisons.
not improving, your company most likely isn’t growing. And, whether or not your
score is higher than your competitor’s, if you aren’t scoring better, you’ve
got a lot of work to do.
NPS score to drive growth and encourage customer loyalty. Continue on an upward
trajectory, and you’ll soon naturally rise above the competition.
Surveys help you make the best decisions
for your business. Are you ready to get started with your free Survey Town
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account today, and you can upgrade at any time.
Image: Felix Mittermeier on Unsplash