What is a good Net Promoter Score?
Loyal customers are the promoters of your company. These are the customers with a strong intention to continue and strengthen the relationship and to recommend the organisation to friends, family and acquaintances. They are the ambassadors of the organisation.
More and more organizations are using and measuring the Net Promoter Score (NPS) as a key indicator of customer satisfaction and loyalty. A frequently asked question we hear in the market is:
At what NPS Score are you doing well?
The theory states that the score must be positive, because then the organization has more customers who recommend it than customers who advise against it and speak negatively about the organization.
Next, you can say that the higher the score, the better the organization performs. This is logical, but to answer the question, you also want to know how you score compared to other organizations. The graph below shows the distribution of NPS scores for a number of sectors in which Feeddex conducts NPS measurements. What is striking is that the scores vary per sector and that there is a wide spread. So whether you are doing well also depends on the sector in which you operate and what the average is. If you are doing better than average, you will stand out from the rest and you are doing well.
Next, you can say that the higher the score, the better the organization performs. This is logical, but to answer the question, you also want to know how you score compared to other organizations. The graph below shows the distribution of NPS scores for a number of sectors in which Feeddex conducts NPS measurements. What is striking is that the scores vary per sector and that there is a wide spread. So whether you are doing well also depends on the sector in which you operate and what the average is. If you are doing better than average, you will stand out from the rest and you are doing well.
NPS Feeddex Benchmark
In some sectors, you are doing well with an NPS of 20, while in other sectors, companies start to stand out with an NPS of 30-35. Bain & Company, the "inventor" of NPS, provides the following guidelines for what is considered good:
▪ Above 10 is reasonable
▪ Above 20 is good
▪ Above 50 is excellent
▪ Above 80 is world class
In any case, it is up to you to raise the bar a little higher each year and improve your own score. Continuously measuring feedback and NPS after customer contacts can help you with this. In practice, we see that organizations that measure continuously (and actively respond to this!) are better able to improve their NPS scores.
▪ Above 10 is reasonable
▪ Above 20 is good
▪ Above 50 is excellent
▪ Above 80 is world class
In any case, it is up to you to raise the bar a little higher each year and improve your own score. Continuously measuring feedback and NPS after customer contacts can help you with this. In practice, we see that organizations that measure continuously (and actively respond to this!) are better able to improve their NPS scores.