If you’re reading this, it’s likely you already understand the importance of the Net Promoter Score (NPS) to measure customer happiness. It’s quick and simple to calculate and is a great predictor of growth. But what is a good Net Promoter Score? And how can you do to achieve it?
In this post, I’m going to answer these very common questions.
Just to recap, your Net Promoter Score is an absolute number ranging from -100 (everybody is a detractor) to 100 (everybody is a promoter). According to most experts, a score of 30 is considered to be good. Whilst 50 or more is excellent and 70 “world class”.
However, these estimates are not specific to any particular industry. And as you can see from the chart below, Net Promoter Scores do vary a fair amount by industry group.
This might sound obvious but it’s actually a rather common blunder. If you are going to compare your score to others, then make sure you’re doing so with sensible competitors in the same industry. For example, if you run a marketing company with a score of 80, there’s no point in showing off in comparison to Apple’s score of 75. If your not in the same industry then there’s little relevance.
In fact comparing your score to just another marketing company isn’t quite enough. Focus on more precise, direct competition. For example is a competitor a digital marketer like you? Or are they a telemarketer?
When it comes to knowing how good your score is relative to your industry, the more specific you are at defining your competition the better.
Whilst it’s useful to see how you fare against the competition, businesses can often fall into the habit of recording their score just for bragging rights. And can end up losing sight of what really counts – that is whether or not their score and business are actually growing.
It’s all good and well if you’re amongst the top of your industry leaderboard with a score of 55 but if your score has been continuously falling over the last few quarters then that should be a cause for concern. Similarly, if you are scoring below 0, even though this might be higher than your competitors, this should raise a big red flag.
If you really want to see growth in your business, then you need to make sure that everyone in your company is focused on customer happiness. A good way to encourage this is to share the results of your NPS surveys with your employees, particularly those on the front line.
Very often with Net Promoter surveys, customers will have commented on the reasons for their score. And this will give a clear guide to employees as to how to actively improve the customer experience.
Managers and directors should similarly focus on understanding the reasons for scores. A score might be the result of a new product, a change in web layout etc. It’s important to analyse trends and make sure that any further product development is influenced by feedback and the happiness of the customer.
When it comes to what a good Net Promoter Score is for your business, you should really be asking yourself whether your score is improving. If the answer to this is yes then, you’re doing well!
If you are able to address the reasons behind the score and build relationships with your customers, you will almost certainly see continued growth of your Net Promoter Score and your business moving forward.