Net Promoter Score: What’s a Good Score in My Industry?

Customer satisfaction and loyalty have always been crucial metrics in measuring the success of a business. But how do you accurately measure your ability to keep customers happy and loyal?

The Net Promoter Score is the perfect tool to determine overall customer sentiment — a topic that we’ve discussed in detail in another article. It is calculated based on one, simple question: “On a scale of 1 to 10, how likely would you recommend us to a colleague or a friend?” Based on the number a customer chooses, they are then placed into the following categories:

  • Promoters – customers who give a score between 9-10. These people have a high lifetime value who will refer prospects to help your business grow.
  • Passives – customers who give a score between 7-8. These people are relatively satisfied who can turn loyal or jump ship when your competitors offer something better. They will not go out of their way to refer prospects.
  • Detractors – customers who give a score between 0-6. These people are dissatisfied with your service and may damage your brand’s reputation through word-of-mouth or negative reviews.

Ultimately, your NPS is the difference between the percentage of promoters and the percentage of detractors. If every customer is a detractor, you will get the lowest possible score of 100. If every customer is a promoter, you will get the highest possible score of 100. However, both of these scores are rare and unrealistic.

But what is considered a good NPS score? Let’s discuss.

What is a good NPS score?

Technically, any score above 0 is considered a good score. It implies that you have more promoters than detractors. A score above ranging from 30 to 50 is excellent. You place value on a quality customer experience and generally deliver it with a strong group of promoters willing to refer others to your business. Anything between 50 to 70 is excellent. Most beloved brands have an NPS in the 50-70 range. They have a large group of brand advocates sharing their positive experiences with their personal networks. Any score above 70 is the best of the best – although it is rare and often unattainable. Any company with this NPS score is considered the best in their industry.

As there isn’t a universal standard for the NPS score, most businesses compare their scores to other companies in their industry. This gives them an idea of how their customer experience is faring against their competitors. If they see that they’re behind, they can analyze the top industry performers and adapt their approach to customer service.

To paint a clearer picture of what a good NPS score is, you may go over the 2020 B2C NPS Benchmarks from Satmetrix. The infographic shows the average NPS and leading scores in 23 industries, drawing on responses from over 66,000 consumers. You gain insight into your competition and see how your company’s NPS compares.

However, while industry benchmarks are great for knowing how you stack up against the competition, anchoring on your competitors’ scores will place a ceiling on your potential. For instance, even though an NPS of 10 might be higher than others in your niche, it still leaves room for progress. The higher your net promoter score, the more likely it is that customer referrals will come flooding in – turning into leads and revenue for your business.

What is a good NPS score for SaaS?

For software companies, what is considered a good NPS score is anything between the 20-40 range. In a HubSpot article, the average NPS score for software and apps is 28. Typically, a score of 60 and above is relatively hard to achieve in the SaaS industry.

If your score is lower than 20, that means you need to take a look at what you might be doing wrong and make the necessary adjustments to better satisfy your customers.

All SaaS products are different, and their relation to customers varies too. While it’s great to consider SaaS NPS benchmarks to gauge your company’s performance, it’s best to compare your past, present, and future NPS results to see how well your company is doing at improving the experience of customers. From here, tracking your NPS score consistently and comparing it over time is the most accurate and effective way to determine customer promotion and success.

What is a good Employee NPS score?

As an organization, you shouldn’t only take into account the NPS of your customers. Employee NPS is also vital because engaged and happy employees stay longer with the company and work harder. More importantly, your employee NPS measures how likely your employees will recommend your company as a good place to work for.

Just like customer NPS, an employee NPS score ranges anywhere from -100 to 100. Any score above zero is acceptable.

What is a good employee NPS score? Generally, a score between 10-30 is good and a score of 50 and above is exceptional. Anything less than -10 is a warning sign that you need to take better care of your employees. Here’s a brief and concise article on how to improve employee satisfaction and boost your NPS score.

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