It’s one thing to know how well you’re doing in the eyes of customers—but where do you stand among your biggest competitors? Are customers more willing to spread the good word about other organizations in your industry? To make it easy for you to see how you stack up when it comes to customer loyalty, we compiled the data from hundreds of Net Promoter Score (NPS) benchmark surveys into a comprehensive benchmark report.
A benchmark is a standard or point of reference by which others may be measured against. In the case of NPS benchmarking, businesses often use industry-specific benchmarks to measure how their company compares to the industry average.
On a scale of 0 to 10, how likely is it that you would recommend this company to a friend or colleague?
Based on the selected number within the range, your respondents are assigned to one of three categories:
If you use our survey template, you’ll see that we’ve added a couple of clarifying questions to help you understand the reasoning behind respondents’ ratings:
The answers to these questions will be enlightening, but they do not factor into your NPS. It is advisable to include them so that you have a clear understanding of why respondents answered as they did.
NPS calculation is based on the responses to your survey. Use the following steps to determine your NPS percentage:
15 Detractors (15%)
25 Passives (25%)
60 Promoters (60%)
Once you’ve gathered your survey data and calculated your score, it’s time to figure out what it means. To make the most sense, your score needs to be put in context. Globally, according to our benchmark data, the average score for over 150,000 organizations is 32.
Also indicated in our global benchmarks:
In general, a NPS of -100 to 0 needs improvement. A score of 0-30 is good, 30-70 is great, and 70-100 is excellent.
These statistics are for global organizations across multiple industries, which is interesting but not necessarily illuminating. So, what is a good Net Promoter Score?
You cannot really determine the meaning of your NPS without the context of where it falls within your industry. For some industries, 30 might be among the worst scores. For others, it might be a leader in the market. Regardless, if your score is below zero, you have some work to do to earn loyalty from your customers.
Our Net Promoter Score Survey Template is a valuable tool to measure customer loyalty. Used by many of the world’s leading companies, the NPS is a proven metric with strong correlations to business success. In addition to asking customers the ultimate question (“How likely is it that you would recommend this company to a friend or colleague?”), we ask open-ended follow-up questions. These additional questions find the reason behind a customer’s score and lets you identify your biggest fans. It also shows you which people you need to circle back with to remedy negative customer perceptions.
It’s more expensive to acquire new customers than to keep existing ones. Increasing your customer retention by just 5% can increase your profits by 25-95%. These are pretty good reasons to work on customer loyalty.
NPS is the best way to monitor customer loyalty. Monitor your overall score and the breakdown of detractors, passives, and promoters. Regular testing allows you to act quickly if you see changes that warrant action.
Watch for obvious red flags, such as an increase in detractors, but also look for changes in passives. If detractors decrease and passives increase, it could mean that more of your customers are feeling better about your company but are not at a level that makes them feel they can promote you to others. This merits further attention to move them to Promoters.
Remember, your NPS survey doesn’t have to stick to one question. You can add some open-text questions to clarify why respondents answered the way they did. These answers will help you make action plans to turn detractors and passives into promoters.
Skip the math formula and find your NPS with our calculator. You’ll just need the number of Detractors, Passives, and Promoters from your survey.
Maybe you’ve already sent the Net Promoter Score benchmark survey to your customers. Or perhaps you’re sending out the survey this year. But you need context to understand what your survey results really mean. If your Net Promoter Score analysis is 41, how do you know whether that’s good or bad?
Knowing where you stand—and creating goals from there—takes perspective. Although your Net Promoter Score is “only” 41, you’d feel pretty good about it if you knew you were in the 99th percentile compared with the average Net Promoter Score. We’re creating external Net Promoter Score by industry benchmarks to help you get this deeper level of understanding.
Here’s a peek at some of the data we’ve collected from the Net Promoter Score Survey:
Did you know that 20% of customers are considered to be passives—satisfied but also susceptible to competitors or substitutes?
As we mentioned earlier, your NPS should be evaluated based on the context of your industry. With that in mind, here are a few recent NPS benchmark average scores for a variety of business verticals. Keep in mind that scores can range from -100 to 100.
Business-to-consumer (B2C) NPS benchmarks by industry
|Communications & media||29|
|Internet & software services||4|
Using the data
If your company is in the B2C healthcare industry and your NPS is 18, it would be wise to look into the data gathered from additional survey questions or send a follow-up survey to identify ways you are falling short for your customers. After a few months of dedicated effort to improve customer satisfaction and loyalty, measure your NPS again. It’s wise to measure regularly, even if you are at or above the average, to watch for fluctuations in your score.
|Technology & services||61|
|Digital marketing agency||60|
|Logistics & transportation||43|
|B2B software & SaaS||40|
|Cloud & hosting||25|
Using the data
If your B2B business falls into the construction category and has a NPS of 50, you’re doing better than average for your industry. Look into supporting data and market research to find out what you’re doing to garner customer loyalty, keep up the great work, and monitor your NPS to ensure you continue to meet and exceed your customers’ needs. Analyze fluctuations and take action where necessary.
You’ll notice that there are a lot of variabilities in Net Promoter Scores across industries. Visit SurveyMonkey Benchmarks for more detailed information on obtaining NPS data for your industry. NPS data is also available by company or organization. See how your competitors stack up!
Remember that Net Promoter Scores change over time, so benchmarks may trend up or down—and so will your scores. The keys to a positive NPS are brand reputation, support experience, and frequency of updates to products and services. Use surveys to obtain key information that impacts your customers’ loyalty—and your NPS—and put the data to good use.
Where does your organization stand? Check out SurveyMonkey Benchmarks to see how we can help you compare your Net Promoter Score results with other organizations.
Net Promoter Score and NPS are registered service marks of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.
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We can help you learn even more about where you stand.