NPS Benchmarks: To help you understand customer loyalty
Net Promoter Score(NPS) is one of the most refined customer feedback metrics that helps you understand customer loyalty and experience. As a business metric, NPS allows organizations of all sizes and all categories with a single goal that is to increase their score with more satisfied, enthusiastic customers that can be tracked and quantified over time. Customer loyalty plays a vital role in companies' success; it directly increases your repeat business and new businesses by referring your company to their circle of people.
What is NPS Benchmark?
NPS Benchmarks are the average Net Promoter Score that helps measure customer loyalty on a scale from -100 to 100 by gauging customers' inclination to attract and refer new business and repeat business. NPS benchmarks vary to different industries, sometimes varies for every country. Mainly it helps fellowships to keep a self-check on their competitiveness among the industry players. They allow you to identify the aspects that may hinder you from getting a good NPS score. Choosing the right NPS Question and setting up your NPS benchmarks will help you build a strong base of your business pyramid.
Why should you look at the industry NPS benchmarks?
For instance, let us take the online entertainment industry, the NPS benchmarks for the same is 39. Let us compare the 2 leading players of the industry Amazon and Netflix. Netflix has a high NPS score of 68, nothing to say it must be the peak among the competition. On the other hand, Amazon Prime also has an NPS score of 62, which’s pretty high right. A high NPS score means a lot of customers are so happy with the brand that they are much more likely to stick around with it simply because they like the company alongside its products and its services. Apart from analyzing your strategies, NPS benchmarks also help you assess your competitor’s strategies.
What is a good NPS score?
For every Customer experience metric, there is a series of factors that influence, Net Promoter Scale also has such characteristics. A good NPS value varies accordingly for every industry. For example, let's say you are in a food manufacturing industry, and the industry average NPS is around 40, and your company's score is 35, then it is a pretty good score. You are doing well in your industry; that's what the value says.
The importance of the Net Promoter Score is that it gives you insights into your customer loyalty spectrum. You cannot provide an ideal NPS score typical to all the business.
Some NPS Benchmarks by the industry:
An NPS benchmark is a good NPS score achieved by top brands of the industry, breaking the industry standards and thereby improving the CX improving 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
What to do if you are on the lower side of the NPS benchmarks for your industry?
Take time and analyze: If you find your NPS score is at the lower end of your industry benchmarks, don't panic. Still, the situation under control. Study the trends for your brand and refine your products, services, or business improvement plans accordingly.
Listen to customers: Now comes the importance of part 2 of the NPS survey, where you get the feedback directly from customers. Read what the customer wants to say about the product, the reason behind their negative ranking for your service.
Set and manage goals: Set an NPS goal that benchmarks your score with the previous score and changes the system to improve customer satisfaction. Create realistic goals and work hard to achieve them.