NPS, or Net Promoter Score, is a widely used metric in the business world to measure customer loyalty and satisfaction. It provides insights into how likely your customers are to recommend your products or services to others.
The calculation of NPS involves segregating survey respondents into three groups: promoters (those who give a score of 9 or 10), passives (those who give a score of 7 or 8), and detractors (those who give a score of 0 to 6).
How is NPS calculated?
The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score falls within a range of -100 to 100, indicating the overall sentiment of your customer base.
What is a good NPS?
Generally, an NPS above 70 is considered excellent, reflecting a high likelihood of customer recommendations and strong loyalty. Scores between 50 and 70 are good, suggesting satisfied customers, while scores below 50 may indicate areas for improvement.
But it is also important to look at the industry you are working in. NPS benchmarks can vary a lot based on the products or services you provide.
NPS Benchmarks across Industries.
As you can see from this research on NPS by retently, different industries should have different NPS expectations.
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Enhancing your NPS involves a multi-faceted approach. Actively solicit and analyze customer feedback to identify pain points and areas of delight. Focus on addressing issues highlighted by detractors while finding opportunities to exceed promoters' expectations. Personalize customer interactions, streamline processes, and invest in employee training to elevate customer experiences. Regularly track NPS changes to measure the impact of your efforts and ensure continuous improvement.
