Think about the last time you had a really positive experience at a store or with a service. As you walked out, you probably thought, “I’ll definitely recommend this place to my friends.” That feeling is exactly what Net Promoter Score (NPS) represents.
Why should NPS matter to you? It gives you valuable insight into how your customers feel, what they love about your brand, and where there’s room for improvement.
In this blog, we’ll look into what NPS is, why it matters, and how Costco uses its impressive NPS to build strong customer loyalty.
What is NPS?
Net Promoter Score (NPS) is one of the simplest and most effective ways to measure customer loyalty and satisfaction. It’s built around a single, but powerful question:
“On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?”
Based on their responses, customers are grouped into three categories:
- Detractors (0–6): Unhappy customers who may damage your reputation and discourage others.
- Passives (7–8): Generally satisfied but unenthusiastic customers are still vulnerable to competitive offers.
- Promoters (9–10): Loyal enthusiasts who are likely to fuel growth through positive word-of-mouth.
To calculate your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters:
NPS = % Promoters – % Detractors
This score gives companies a clear snapshot of how their customer experience efforts are landing. A high NPS means strong loyalty, while a low score is a red flag for potential churn and reputational risks.
NPS isn’t just a number; it reflects how well your business meets customer expectations. Whether you’re benchmarking against competitors in the grocery industry or analyzing industry-wide trends, NPS helps identify what’s working and what needs improvement.
Costco’s NPS Performance
Costco has a solid NPS of 49, which reflects strong customer loyalty within the grocery and retail space. This score is calculated from the following customer sentiment breakdown:
- Promoters: 63%
- Passives: 23%
- Detractors: 14%
NPS = % Promoters (63%) – % Detractors (14%) = 49
Costco is performing well above the benchmark compared to the grocery industry average, which is 37, according to QuestionPro’s Q1 2025 Benchmarking NPS and CSAT Report. This 12-point lead suggests that a majority of Costco’s customers are not only satisfied, but enthusiastic enough to recommend the brand to others.
This level of advocacy reflects positively on Costco’s consistent value, membership perks, and customer experience. While there’s still a notable percentage of detractors, the high promoter count keeps Costco’s NPS in a competitive position in retail and grocery.
How Does Costco Compare to Grocery Industry Benchmarks?
Costco has earned an impressive NPS of 49, well above the grocery industry average of 37. This strong score shows that Costco is doing a great job in winning over its customers and building loyalty in a highly competitive market.
These insights come from QuestionPro’s latest study, which surveyed 1,000 participants to gather NPS data across various companies and industries. The report reflects real user opinions from Q1 2025 and is updated quarterly.
Costco’s Customer Testimonies
Customer reviews help explain why Costco earns good NPS:
Love Costco. They have great customer service. And they support diversity, equity, and inclusion.”
“My mom says if Costco does not have it, you don’t need it. I’ve had nothing but good experiences in store and online.”
“Costco is always clean, friendly, and helpful! Best prices on bulk or large size items. I love shopping there! AND they support Diversity, Equity, and Inclusion, which is the MOST important piece. Thank you Costco!!!”
“I love Costco. Has everything we need and more. The stores are spotless inside and out, including their bathrooms. Employees are very knowledgeable, friendly, and always willing to help. The store can be crowded, but very seldom is there a long wait at the cashier. They are customer experience oriented.”
(Reviews sourced from verified users on Trustpilot.)
These testimonials highlight the key factors behind Costco’s strong customer loyalty, product quality, personalized service, reliability, and a seamless shopping experience.
How is Costco’s High NPS Driving Stronger Customer Loyalty?
Costco’s impressive Net Promoter Score of 49 builds and maintains customer loyalty significantly. Here’s how:
- Top Ranking
Costco is ranked well and leading the way in customer satisfaction within the retail industry. It outperforms major competitors with a strong NPS score, including Amazon and Target.
- High Customer Loyalty
With 89% customer loyalty, Costco has established itself as a trusted brand that customers keep coming back to.
- Promoter vs. Detractor Breakdown
Costco’s NPS includes 69% Promoters, meaning nearly 7 out of 10 customers would highly recommend the brand. This creates a solid foundation of customer advocacy.
- Gender and Demographic Insights
- Female customers rate Costco’s NPS 5 points higher than male customers.
- Native American customers give Costco the highest NPS, showing appeal across diverse groups.
- Customers aged 31-35 have the highest NPS, reflecting a strong connection with this age group.
- Long-term Relationships
Costco’s NPS is highest among customers who have been using its services for 2 to 5 years, highlighting the brand’s ability to build lasting loyalty over time.
By focusing on delivering great value and a positive shopping experience, Costco’s high NPS continues to be a key driver of its strong customer loyalty.
How to Measure and Improve Your NPS?
Like Costco has done, measuring and improving your NPS is a simple but powerful way to boost customer loyalty and satisfaction. Here’s how you can measure your own NPS and use the insights to improve your customer experience:
1. Create Your NPS Survey
Start by creating a survey with the classic NPS question. You can use platforms like QuestionPro, where, with a couple of clicks, you can create an NPS survey in seconds:
“On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?”
For deeper insights, try our AskWhy feature. It adds an open-ended follow-up question to gather context on scores.
QuestionPro’s NPS template makes setting up your survey quick and easy, so you can start collecting feedback in no time.
2. Distribute Your Survey
Once your survey is ready, share it through different channels:
- Email invitations
- Web links (on your website or in email signatures)
- QR codes (for in-store or event-based surveys)
- Social media and SMS
You can also use QuestionPro Audience to target specific groups, helping you reach the right respondents for more accurate insights.
3. Analyze Your Results in Real Time
QuestionPro automatically calculates your NPS and groups customers into Promoters, Passives, and Detractors as responses roll in. This gives you an instant snapshot of customer sentiment, just like Costco does to track its customer loyalty.
With real-time analysis, you can quickly see where your business excels and where there’s room to improve.
4. Take Action on Feedback
The key to improving your NPS is acting on the insights you gather. Look closely at the areas where your score is lower and take steps to improve those experiences. Whether tweaking your product, improving customer service, or addressing pain points, QuestionPro’s tools help you prioritize the most important areas for change.
And with benchmarking, you can compare your results to industry leaders, giving you a clear idea of how you stack up.
With QuestionPro, measuring and improving your NPS becomes an ongoing process that keeps you on track to build stronger customer relationships and continue growing your business, just like Costco has done to keep its customers loyal and satisfied.
Ready to Improve Your NPS?
Want to boost your NPS and grow customer loyalty? We’ve got you covered!
- Stay Ahead with the Latest Insights: Download the Q1 2025 NPS Benchmark Report to see how top brands drive loyalty.
- Optimize Your NPS Strategy: QuestionPro has the tools to help you measure and improve customer satisfaction. Let’s talk about how we can help!
We’ll help you identify key areas to improve your NPS and customer experience.
Costco isn’t the only company in the grocery retail industry with valuable lessons for those looking to improve their customer service and experience. Below, we recommend a few articles where you can learn how other major brands manage to maintain a high NPS and a loyal customer base — you’ll surely find some useful insights along the way.
