Net Promoter Score (NPS) measures customer loyalty on a scale from -100 to 100 by gauging customers’ inclination to attract and refer new business and repeat business. Needless to say, brands are always trying their best to get and stay consistent with a good NPS score. NPS surveys help keep track of your scores and provide insights into improving them.
Industry benchmarks for NPS
NPS industry benchmarks are an excellent way to assess your NPS relative to your competition. They help identify and address aspects that may hinder you from getting a good NPS score. Major players in any industry have established an NPS that you may use as a benchmark. You can also run an NPS study and use that score to set as your baseline.
So why should you look at industry Net Promoter Score benchmarks?
Consider you are a key player in the software industry, and your NPS is 40. This score is really good since the industry average is +34. The leaders in this industry, namely Adobe or Salesforce, have a score of +62 and +66, respectively. This gives you a perspective of the number of initiatives and efforts you’d need to take to go above the curve.
Here are some NPS by the industry for your consideration
30 industries and their NPS scores are listed below for benchmarking your brand. Top brands achieve good net promoter score (NPS) by benchmarking against industry standards and improving CX by raising the bar.
- Education/training: 71
- Digital marketing agencies: 61
- Tablet computers: 52
- Consulting: 51
- Brokerage/investment firms: 46
- Ecommerce: 48
- Online shopping: 43
- Construction: 43
- Home insurance: 42
- Supermarkets: 39
- Online entertainment: 39
- Automobile insurance: 39
- Airline companies: 39
- Credit Cards: 37
- Laptop computers: 37
- Hotels: 36
- Shipping services: 35
- Banking: 35
- Smartphones: 34
- Financial services: 34
- Cellphone service: 30
- Logistics/transportation: 29
- Software and applications: 34
- Pharmacies: 28
- Travel related websites: 18
- Health insurance: 14
- Satellite/cable TV services: 7
- Software and applications: 28
- Satellite/cable TV services: 7
- Internet service providers: -7
What if you do not have an industry benchmark?
If a benchmark for your industry is non-existent, you should benchmark against yourself. It is worthwhile to remember NPS isn’t merely a score. It is a system and is meant to drive significant improvement in your products, services, and customer experience (CX). It helps you uncover and close the loop with unsatisfied or unhappy customers and address their issues in real-time. Consider NPS as your guiding star to continually improve your business and customer experience management. Always go through customer feedback and any specific comments that you might receive. These will give you insights into the score you receive and what changes or refinements can help improve that score.
Reporting on and boosting your Net Promoter Score (NPS)
NPS performance is key to brand success, and customer satisfaction and hence should be part of all your internal communications such as revenue, new product developments, customer acquisition, customer churn, etc. You need all your departments and functions updated for the next steps and the best results. Your average Net Promoter Score will not be improved by one department’s efforts or your function working in silos. So how do you report on and boost your NPS? We’ve outlined some key steps for you.
1. Improve your NPS over time
You cannot have an absolute NPS score, it needs to be improved over a period of time. Study the NPS trends for your brand and make refinements to your products, services, or business improvement plans accordingly. QuestionPro CX administrators can gather deeper insights from customer feedback with NPS+. With it, you go the extra mile after asking customer ratings on a scale of 0-10. As soon as your customers rate you, they get to support their rating, essentially the reason behind their rating. Upon choosing the root cause, customers get redirected to an open-ended question where they can input any additional comments. They also have an option to vote for other customers’ comments bringing ideation to the system.
2. Set and manage goals
In order to improve your NPS, map out realistic goals and work towards achieving them. Report on that data accordingly in your internal meetings. If your plan is to reduce customer churn, present data on churn, and retention to your teams.
3. See what your customers are saying
You need to go through your customer feedback and comments for in-depth ideas on their concerns and grievances. Use that idea to see what issues or concerns your customers are facing. This will also help you bucket your priorities as high and low. Customer appreciation for your brand will go high by solving burning and current issues.
4. Segment your data
You need to segment the data you have. You cannot have all your customer data just lumped together in one section. Your customers do not have the same tastes, needs, requirements, or issues. Segment them per their geography, purchases, licenses, etc., so you can address their concerns or market to them accordingly. Would you send a common letter to all your customers, and will it be engaging for all? Define customer personas and segment your data accordingly.
Properly segmented data helps identify your brand’s top promoters. You can involve these promoters in co-creating new products and services.