What is a good NPS score by industry?
The Net Promoter Score (NPS) is a widely-used metric for measuring customer loyalty and satisfaction. It is calculated by asking customers a single question: “On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?” Based on their response, customers are categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6). The NPS is then determined by subtracting the percentage of Detractors from the percentage of Promoters. While there is no one-size-fits-all answer to what constitutes a good NPS score, the following guidelines can help businesses understand how their scores compare to industry standards.
Financial Services Industry
In the financial services industry, a good NPS score typically ranges from 50 to 70. This is due to the competitive nature of the industry and the high stakes involved with customers’ financial well-being. Companies like banks, insurance providers, and investment firms often aim for scores in this range to ensure they are meeting customer expectations and fostering loyalty.
Technology Industry
The technology industry is known for its rapid innovation and high customer expectations. A good NPS score in this sector can vary, but a score of 60 to 80 is generally considered strong. Tech companies like Apple, Google, and Microsoft often achieve scores in this range, reflecting their commitment to customer satisfaction and loyalty.
Healthcare Industry
The healthcare industry faces unique challenges, including complex regulations and varying patient needs. A good NPS score in healthcare ranges from 30 to 50. This reflects the industry’s focus on improving patient care and addressing the specific concerns of vulnerable populations.
Consumer Goods Industry
In the consumer goods industry, a good NPS score typically ranges from 40 to 60. This reflects the diverse nature of the industry, which includes everything from food and beverage companies to clothing and electronics manufacturers. A score in this range indicates that the company is meeting customer expectations and maintaining a competitive edge.
Travel and Hospitality Industry
The travel and hospitality industry is highly competitive, with customers placing a premium on experiences. A good NPS score in this sector ranges from 50 to 70. Companies like Marriott, Hilton, and Airbnb often achieve scores in this range, showcasing their commitment to customer satisfaction and service excellence.
Conclusion
While there is no definitive answer to what constitutes a good NPS score by industry, the guidelines provided above can serve as a starting point for businesses to assess their performance. It is important to remember that NPS is just one of many metrics that can help businesses understand customer loyalty and satisfaction. By continuously monitoring and improving their NPS scores, companies can ensure they are meeting customer expectations and fostering long-term relationships.
