What is a good NPS Score (2021 Benchmark)
NPS Scores range from -100 to 100 and vary widely based on the industry. On average anything above 50 considered as “Excellent” and if you cross 75 then it’s “World-class”.
In case you are wondering what NPS is and how it’s being calculated then let’s first understand Net Promoter Score -
The NPS is the leading metric to measure customer loyalty by asking just one question, “How likely are you to recommend us to your friend or colleague?”. The rating is usually asked on a scale of 0 to 10 with 0 being least likely to 10 being most. Once the responses come back, users are segmented based on 3 groups -
- Promoters: 9 & 10
- Neutrals/Passives: 7 & 8
- Detractors: 0 to 6
Based on the respondents, the NPS is calculated as
NPS = % of Promoters — % of Detractors
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The average NPS score is 32 based on the ratings from more than 200,000 companies across different industries.
According to Satmetrix, this is how the industry-wise benchmark looks like for 2021.
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Understanding your NPS Score
- Compare with the industry benchmark
Start with comparing your score with the industry benchmark according to the above table. Let’s say you are into the Health Insurance business and your NPS Score is 15, you are almost around the industry benchmark of 19. Being customer-obsessed and eager to improve the overall satisfaction can definitely skyrocket your revenues and valuation. There is always room for improvement. - Compare with your competitors
Check the scores of the competitors in the industry and try to benchmark yourself. Most of the time your competitors might not be tracking the NPS Score or it might not be in public. In these cases comparing with industry would and setting a new trend by constantly improving your NPS Score can set you apart from competitors. - Understand what’s the primary reason for your NPS Score.
The most common mistake is capturing NPS Score once and forgetting to improve after that. Tracking NPS Score makes you customer-obsessed and it’s an ongoing process. Understanding the reasons behind the individual's score can help you in finding key areas of improvement in the business.
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Improving the Net Promoter Score
Create separate strategies to tackle, detractors, passives, and promoters. Try to improve the ratings across each group. It’s easier to convert detractors to passives and passives to promoters vs detractors to promoters.
It’s always better to break the problem into smaller parts to make it easier to solve.
Reply quickly to your detractors with a well-researched response
Make sure you quickly reach out to the detractors by understanding the key issues and reading his comments. Do not do the mistake with the canned email response and wait for the customer to come back to explain the issue again. Most of the time, customers must have interacted via some other form like support tickets or emails. Try to check the reported issue and if possible resolve them too within 24 hrs and then reach out to the customer.
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Don’t miss out on passives, these are just one step away from being promoters
Passives are those who are not even a detractor or a promoter. He will not spread any good/bad words to the ecosystem. The main problem is they can turn either way at any given point in time. So it’s better to understand the areas of suggested improvement and work on those as well.
Initiating a conversation or getting on a call with them might make them feel that you care about your customers. In fact, as a business, we should care about the customers.
Last but not the least, convert your promoters to actually spread good words.
Congratulations, you have got promoters!! But now what?? Just feel happy and that’s it..
There is a huge chance of potential revenue opportunity from the promoters. If you do it really well, it can potentially create an organic growth hack of increasing your revenues by 20%.
Once the customers give 9 & 10, ask them for one more favor.
- Recommend us on Facebook Page
- Rate 5 Star on PlayStore
- Review us on Google
- Review us on Quora (maybe)
.. and whatever you want :)
“It’s a Psychology and works pretty well”
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P.S- In case you are looking for NPS (Net Promoter Score) Tool then please check out https://doter.co