What is a Good NPS Score? A Definitive Guide (Definition & Benchmarks)
A comprehensive guide to understanding what defines a good NPS score, effective benchmarking strategies, and leveraging Net Promoter Scores for enhanced customer satisfaction and industry success.
Running a business always carries the risk of losing your customer base to competitors. The CX Trends 2023 Report found that approximately half of the respondents surveyed would switch to a different brand after just one negative customer experience.
Experiencing a fifty-percent customer turnover can be detrimental to almost any business, highlighting the urgency to focus on customer satisfaction.
As per the Gartner Survey, 81% of marketers consider customer satisfaction to be the primary competition in their industry.
Today, with billions of connected devices facilitating trillions of customer interactions every minute, people are sharing more information than ever. This means that the success or failure of your business can hinge on how satisfied your customers are.
But how can you effectively measure this level of satisfaction?
This brings us to the Net Promoter Score (NPS), a metric that has become the North Star for gauging customer satisfaction.
What is Net Promoter Score?
Net Promoter Score is a simple yet powerful metric that measures customer loyalty. It's like a report card for your product or service, giving you a clear picture of how likely your customers are to recommend you to others, which helps assess your product-market fit.
This score is derived from a simple question survey: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
How do you calculate Net Promoter Score?
To calculate NPS, you can create an NPS Survey manually or by using a tool like 1Flow.
1Flow offers a seamless experience with its no-code survey launch feature, allowing for a swift setup without the need for technical expertise.
The survey will ask customers how likely they are to recommend your product on a scale from 0 to 10.
'0' means 'Not likely at all' and
'10' means 'Very likely'.
Group your respondents into three categories:
Promoters (score 9-10) - Happy customers who had a positive experience with your product and are highly likely to recommend it to others.
As your most enthusiastic customers, they are inclined to endorse your brand through positive online reviews, active involvement on social media, and recommending the product or service to their friends.
Passives (score 7-8) - These are somewhat satisfied customers, but they may not actively promote your product.
Detractors (score 0-6) - These are unhappy customers who may have had a negative experience and may spread negative feedback about your product. They're not loyal and might stop using your product or service, which is a big risk of “churn”
Once the survey is completed, use this formula:
NPS = Percentage of Promoters - Percentage of Detractors
This calculation yields a score between -100 and +100, where a higher positive score indicates better results, with anything surpassing +70 signifying a top-tier product in the market.
The results from customers can provide valuable insights into their perception of the
organization, their sentiments, and whether the experience met their needs.
Simple math, right?
Even though it might seem easy, sticking to the exact steps and phrasing is key to getting a trustworthy result.
What is a good Net Promoter Score?
NPS scores, ranging from -100 to +100, help measure customer satisfaction.
When it comes to assessing your NPS, there are two perspectives to consider:
Absolute NPS:
Evaluates your score in relation to scores across all industries. According to Bain & Company, the creators of NPS, a score:
Above 0 is considered satisfactory
Above 20 is seen as positive
Above 50 is regarded as excellent
Above 80 is considered exceptional
Ideally, aim for a minimum NPS score of +50, indicating a positive customer experience. Anything below 50 may indicate room for improvement.
If your score is above 0, it's a good sign with more promoters than detractors. Scores below 0 indicate bad customer experience and potential growth issues.
Relative NPS:
Compares your score with the average scores of other companies as per your industry standards.
This allows you to gauge how well you fare against your competition, serving as an indicator of successful customer satisfaction.
NPS benchmarks vary from industry to industry. When comparing, focus on direct competitors, not unrelated sectors.
How To Benchmark Your Net Promoter Score? A step-by-step guide
Benchmarking your NPS is like comparing apples to apples - it helps you see where you stand with your competitors.
Keep an eye on how your NPS changes over time, and you'll be on the right track.
Research Industry Benchmarks
Start by researching benchmarks by industry and industry averages to understand the typical NPS ranges for businesses similar to yours.
Gather Customer Feedback
Actively collect feedback from your loyal customers, as well as feedback from detractors. This can be done through surveys, reviews, or direct interactions.
Categorize Feedback
Analyze the feedback received and categorize it into specific areas or themes like Qualitative feedback, and feedback from detractors to identify the strengths and weaknesses of your product or service.
Implement Improvements
Based on the feedback and identified areas for improvement, take actionable steps such as refining features, optimizing processes, or addressing customer pain points to enhance your product or service.
Monitor NPS Changes
Continuously track your NPS over time, and how your efforts impact customer satisfaction. Keep an eye on trends to ensure you're headed in the right direction.
Compare Against Competitors
Evaluate your NPS in comparison to industry averages and, if possible, against direct competitors. This lets you gauge your relative performance and where you may need to catch up or surpass others.
Iterate and Refine
Use benchmarking insights to make ongoing improvements to your product, service, and customer interactions. Keep the feedback loop in motion to analyze customer experience metrics.
Factors Affecting NPS Benchmarks
Now, let's talk about the factors that can sway your NPS benchmarks. It's not just about the score itself, but also about the context behind it. Factors like Market Size and spread, Customer Expectations, and your Competitors can all influence your NPS.
Market Size & Spread
In a nutshell, the larger and more spread out your market is, the more diverse your NPS scores are likely to be. Different cultures and mindsets mean different feedback from customers.
Take Europe, for example - customers tend to be more reserved with negative feedback, while in the US, dissatisfied customers are more forthcoming.
Customer Expectations
What customers expect can vary wildly depending on the industry. Medical customers prioritize expertise and availability, while internet service customers want top-notch customer service. This translates directly to different NPS scores for these industries.
Competitive Forces
Competition isn't just about who's got the best marketing - it has a big impact on NPS scores too. In a fierce market, businesses are pushed to innovate, resulting in better customer service and, in turn, higher NPS scores.
But in a more laid-back environment, where competition isn't as fierce, innovation may slow down, potentially keeping NPS scores from getting that extra boost.
Impact of Global Events
Global events can significantly impact NPS results due to shifting customer expectations. The COVID pandemic, for instance, led to a substantial drop in average NPS scores, particularly among younger demographics.
Industries heavily affected by travel restrictions, such as rental cars, transportation, hotels, credit cards, and airlines, saw the sharpest decline in NPS scores. In contrast, sectors like health insurance, fast food, wireless carriers, and TV/internet service providers were less affected.
6 Ways to Improve Your Net Promoter Score
Alright, let's get down to the nitty-gritty. If you're looking to boost your NPS, there are a plethora of strategies you can employ:
Timing and Personalization
Sending NPS survey questions at the right moment in the customer journey is crucial. For product-based companies, this means waiting a bit after a customer's last purchase.
Additionally, personalizing invites by addressing customers by name can significantly boost response rates.
Asking Insightful Questions
While it's essential to ask if customers would recommend you, it's equally important to provide space for them to explain their ratings. Avoid overwhelming them with too many questions, as this can lead to a drop in response rates.
User-Friendly Surveys and Swift Follow-Up Questions
Design surveys to be user-friendly, steering clear of slow loading times and confusing formats. This ensures accurate NPS results.
Additionally, respond promptly to detractors within 24 hours via email to exceed their expectations and potentially turn them into promoters.
Engaging with Detractors and Nurturing Promoters
Don't solely focus on positive feedback. Take the time to dive into detractors' concerns to uncover underlying issues and increase customer retention.
Simultaneously, reward loyal promoters with incentives like discounts or exclusive products to encourage more brand advocacy.
Leveraging Insights and Empowering Customer Service
Identify recurring themes from promoters' responses and incorporate them into your marketing strategy to impress and convert passives.
Empower your customer service team with some autonomy to find tailored solutions, rather than adhering strictly to rigid rules, for higher customer satisfaction.
Emphasizing Value and Continuous Tracking
In a customer-centric organization, every employee's role is crucial. Recognize and communicate the value each department brings.
Regularly monitor your NPS to gauge your business's health and track improvements over time. It's the key to understanding your customer sentiment.
Using NPS as a Driver for Feedback with 1Flow
By using NPS in your product development process, you can improve your roadmap, focus on features that matter to customers, and create a product that stands out in the market.
Integrating NPS in post-interaction communications gives customers a direct channel to provide feedback on their experience. This real-time feedback loop enables you to address issues promptly and demonstrate your commitment to customer satisfaction.
1Flow offers easy-to-use tools for measuring your NPS directly within your app. This means you can collect valuable customer feedback effortlessly.
You don't need a developer or designer to launch surveys. It's designed with product managers and researchers in mind, making it easy to use without requiring technical expertise.
Insightful Dashboards for User Engagement:
1Flow's pre-built reporting and analytical dashboard allows you to monitor user behavior and campaign performance.
This feature allows for precise timing of flows, messages, and interactions based on event triggers and page URL rules, ensuring maximum user engagement at opportune moments.
Highly Responsive Surveys for Enhanced Feedback:
1Flow's functional dashboard facilitates the creation of surveys that elicit high response rates.
By presenting flows and interactions at the right time, aligned with user actions and goals, you can significantly increase the likelihood of valuable feedback.
Measuring Customer Satisfaction and Loyalty:
Leverage 1Flow's advanced features, including analytical dashboards and localization, to gather accurate feedback and measure customer satisfaction and loyalty.
Generating Data-Backed Customer Personas:
Use feedback from 1Flow surveys to build specific customer personas. These personas help you better understand your audience, leading to better products, services, and customer support.
Enhanced User Experience:
1Flow offers a range of customizable features, including multi-language support, easy integrations, personalized messaging, in-app ratings and reviews, and more.
1Flow is a powerful tool for accelerating research timelines, driving customer-centric improvements, and maximizing the value derived from NPS surveys. Sign up today to turn your Detractors into Promoters and witness the positive impact on your business success.
Running a business always carries the risk of losing your customer base to competitors. The CX Trends 2023 Report found that approximately half of the respondents surveyed would switch to a different brand after just one negative customer experience.
Experiencing a fifty-percent customer turnover can be detrimental to almost any business, highlighting the urgency to focus on customer satisfaction.
As per the Gartner Survey, 81% of marketers consider customer satisfaction to be the primary competition in their industry.
Today, with billions of connected devices facilitating trillions of customer interactions every minute, people are sharing more information than ever. This means that the success or failure of your business can hinge on how satisfied your customers are.
But how can you effectively measure this level of satisfaction?
This brings us to the Net Promoter Score (NPS), a metric that has become the North Star for gauging customer satisfaction.
What is Net Promoter Score?
Net Promoter Score is a simple yet powerful metric that measures customer loyalty. It's like a report card for your product or service, giving you a clear picture of how likely your customers are to recommend you to others, which helps assess your product-market fit.
This score is derived from a simple question survey: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
How do you calculate Net Promoter Score?
To calculate NPS, you can create an NPS Survey manually or by using a tool like 1Flow.
1Flow offers a seamless experience with its no-code survey launch feature, allowing for a swift setup without the need for technical expertise.
The survey will ask customers how likely they are to recommend your product on a scale from 0 to 10.
'0' means 'Not likely at all' and
'10' means 'Very likely'.
Group your respondents into three categories:
Promoters (score 9-10) - Happy customers who had a positive experience with your product and are highly likely to recommend it to others.
As your most enthusiastic customers, they are inclined to endorse your brand through positive online reviews, active involvement on social media, and recommending the product or service to their friends.
Passives (score 7-8) - These are somewhat satisfied customers, but they may not actively promote your product.
Detractors (score 0-6) - These are unhappy customers who may have had a negative experience and may spread negative feedback about your product. They're not loyal and might stop using your product or service, which is a big risk of “churn”
Once the survey is completed, use this formula:
NPS = Percentage of Promoters - Percentage of Detractors
This calculation yields a score between -100 and +100, where a higher positive score indicates better results, with anything surpassing +70 signifying a top-tier product in the market.
The results from customers can provide valuable insights into their perception of the
organization, their sentiments, and whether the experience met their needs.
Simple math, right?
Even though it might seem easy, sticking to the exact steps and phrasing is key to getting a trustworthy result.
What is a good Net Promoter Score?
NPS scores, ranging from -100 to +100, help measure customer satisfaction.
When it comes to assessing your NPS, there are two perspectives to consider:
Absolute NPS:
Evaluates your score in relation to scores across all industries. According to Bain & Company, the creators of NPS, a score:
Above 0 is considered satisfactory
Above 20 is seen as positive
Above 50 is regarded as excellent
Above 80 is considered exceptional
Ideally, aim for a minimum NPS score of +50, indicating a positive customer experience. Anything below 50 may indicate room for improvement.
If your score is above 0, it's a good sign with more promoters than detractors. Scores below 0 indicate bad customer experience and potential growth issues.
Relative NPS:
Compares your score with the average scores of other companies as per your industry standards.
This allows you to gauge how well you fare against your competition, serving as an indicator of successful customer satisfaction.
NPS benchmarks vary from industry to industry. When comparing, focus on direct competitors, not unrelated sectors.
How To Benchmark Your Net Promoter Score? A step-by-step guide
Benchmarking your NPS is like comparing apples to apples - it helps you see where you stand with your competitors.
Keep an eye on how your NPS changes over time, and you'll be on the right track.
Research Industry Benchmarks
Start by researching benchmarks by industry and industry averages to understand the typical NPS ranges for businesses similar to yours.
Gather Customer Feedback
Actively collect feedback from your loyal customers, as well as feedback from detractors. This can be done through surveys, reviews, or direct interactions.
Categorize Feedback
Analyze the feedback received and categorize it into specific areas or themes like Qualitative feedback, and feedback from detractors to identify the strengths and weaknesses of your product or service.
Implement Improvements
Based on the feedback and identified areas for improvement, take actionable steps such as refining features, optimizing processes, or addressing customer pain points to enhance your product or service.
Monitor NPS Changes
Continuously track your NPS over time, and how your efforts impact customer satisfaction. Keep an eye on trends to ensure you're headed in the right direction.
Compare Against Competitors
Evaluate your NPS in comparison to industry averages and, if possible, against direct competitors. This lets you gauge your relative performance and where you may need to catch up or surpass others.
Iterate and Refine
Use benchmarking insights to make ongoing improvements to your product, service, and customer interactions. Keep the feedback loop in motion to analyze customer experience metrics.
Factors Affecting NPS Benchmarks
Now, let's talk about the factors that can sway your NPS benchmarks. It's not just about the score itself, but also about the context behind it. Factors like Market Size and spread, Customer Expectations, and your Competitors can all influence your NPS.
Market Size & Spread
In a nutshell, the larger and more spread out your market is, the more diverse your NPS scores are likely to be. Different cultures and mindsets mean different feedback from customers.
Take Europe, for example - customers tend to be more reserved with negative feedback, while in the US, dissatisfied customers are more forthcoming.
Customer Expectations
What customers expect can vary wildly depending on the industry. Medical customers prioritize expertise and availability, while internet service customers want top-notch customer service. This translates directly to different NPS scores for these industries.
Competitive Forces
Competition isn't just about who's got the best marketing - it has a big impact on NPS scores too. In a fierce market, businesses are pushed to innovate, resulting in better customer service and, in turn, higher NPS scores.
But in a more laid-back environment, where competition isn't as fierce, innovation may slow down, potentially keeping NPS scores from getting that extra boost.
Impact of Global Events
Global events can significantly impact NPS results due to shifting customer expectations. The COVID pandemic, for instance, led to a substantial drop in average NPS scores, particularly among younger demographics.
Industries heavily affected by travel restrictions, such as rental cars, transportation, hotels, credit cards, and airlines, saw the sharpest decline in NPS scores. In contrast, sectors like health insurance, fast food, wireless carriers, and TV/internet service providers were less affected.
6 Ways to Improve Your Net Promoter Score
Alright, let's get down to the nitty-gritty. If you're looking to boost your NPS, there are a plethora of strategies you can employ:
Timing and Personalization
Sending NPS survey questions at the right moment in the customer journey is crucial. For product-based companies, this means waiting a bit after a customer's last purchase.
Additionally, personalizing invites by addressing customers by name can significantly boost response rates.
Asking Insightful Questions
While it's essential to ask if customers would recommend you, it's equally important to provide space for them to explain their ratings. Avoid overwhelming them with too many questions, as this can lead to a drop in response rates.
User-Friendly Surveys and Swift Follow-Up Questions
Design surveys to be user-friendly, steering clear of slow loading times and confusing formats. This ensures accurate NPS results.
Additionally, respond promptly to detractors within 24 hours via email to exceed their expectations and potentially turn them into promoters.
Engaging with Detractors and Nurturing Promoters
Don't solely focus on positive feedback. Take the time to dive into detractors' concerns to uncover underlying issues and increase customer retention.
Simultaneously, reward loyal promoters with incentives like discounts or exclusive products to encourage more brand advocacy.
Leveraging Insights and Empowering Customer Service
Identify recurring themes from promoters' responses and incorporate them into your marketing strategy to impress and convert passives.
Empower your customer service team with some autonomy to find tailored solutions, rather than adhering strictly to rigid rules, for higher customer satisfaction.
Emphasizing Value and Continuous Tracking
In a customer-centric organization, every employee's role is crucial. Recognize and communicate the value each department brings.
Regularly monitor your NPS to gauge your business's health and track improvements over time. It's the key to understanding your customer sentiment.
Using NPS as a Driver for Feedback with 1Flow
By using NPS in your product development process, you can improve your roadmap, focus on features that matter to customers, and create a product that stands out in the market.
Integrating NPS in post-interaction communications gives customers a direct channel to provide feedback on their experience. This real-time feedback loop enables you to address issues promptly and demonstrate your commitment to customer satisfaction.
1Flow offers easy-to-use tools for measuring your NPS directly within your app. This means you can collect valuable customer feedback effortlessly.
You don't need a developer or designer to launch surveys. It's designed with product managers and researchers in mind, making it easy to use without requiring technical expertise.
Insightful Dashboards for User Engagement:
1Flow's pre-built reporting and analytical dashboard allows you to monitor user behavior and campaign performance.
This feature allows for precise timing of flows, messages, and interactions based on event triggers and page URL rules, ensuring maximum user engagement at opportune moments.
Highly Responsive Surveys for Enhanced Feedback:
1Flow's functional dashboard facilitates the creation of surveys that elicit high response rates.
By presenting flows and interactions at the right time, aligned with user actions and goals, you can significantly increase the likelihood of valuable feedback.
Measuring Customer Satisfaction and Loyalty:
Leverage 1Flow's advanced features, including analytical dashboards and localization, to gather accurate feedback and measure customer satisfaction and loyalty.
Generating Data-Backed Customer Personas:
Use feedback from 1Flow surveys to build specific customer personas. These personas help you better understand your audience, leading to better products, services, and customer support.
Enhanced User Experience:
1Flow offers a range of customizable features, including multi-language support, easy integrations, personalized messaging, in-app ratings and reviews, and more.
1Flow is a powerful tool for accelerating research timelines, driving customer-centric improvements, and maximizing the value derived from NPS surveys. Sign up today to turn your Detractors into Promoters and witness the positive impact on your business success.
Running a business always carries the risk of losing your customer base to competitors. The CX Trends 2023 Report found that approximately half of the respondents surveyed would switch to a different brand after just one negative customer experience.
Experiencing a fifty-percent customer turnover can be detrimental to almost any business, highlighting the urgency to focus on customer satisfaction.
As per the Gartner Survey, 81% of marketers consider customer satisfaction to be the primary competition in their industry.
Today, with billions of connected devices facilitating trillions of customer interactions every minute, people are sharing more information than ever. This means that the success or failure of your business can hinge on how satisfied your customers are.
But how can you effectively measure this level of satisfaction?
This brings us to the Net Promoter Score (NPS), a metric that has become the North Star for gauging customer satisfaction.
What is Net Promoter Score?
Net Promoter Score is a simple yet powerful metric that measures customer loyalty. It's like a report card for your product or service, giving you a clear picture of how likely your customers are to recommend you to others, which helps assess your product-market fit.
This score is derived from a simple question survey: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
How do you calculate Net Promoter Score?
To calculate NPS, you can create an NPS Survey manually or by using a tool like 1Flow.
1Flow offers a seamless experience with its no-code survey launch feature, allowing for a swift setup without the need for technical expertise.
The survey will ask customers how likely they are to recommend your product on a scale from 0 to 10.
'0' means 'Not likely at all' and
'10' means 'Very likely'.
Group your respondents into three categories:
Promoters (score 9-10) - Happy customers who had a positive experience with your product and are highly likely to recommend it to others.
As your most enthusiastic customers, they are inclined to endorse your brand through positive online reviews, active involvement on social media, and recommending the product or service to their friends.
Passives (score 7-8) - These are somewhat satisfied customers, but they may not actively promote your product.
Detractors (score 0-6) - These are unhappy customers who may have had a negative experience and may spread negative feedback about your product. They're not loyal and might stop using your product or service, which is a big risk of “churn”
Once the survey is completed, use this formula:
NPS = Percentage of Promoters - Percentage of Detractors
This calculation yields a score between -100 and +100, where a higher positive score indicates better results, with anything surpassing +70 signifying a top-tier product in the market.
The results from customers can provide valuable insights into their perception of the
organization, their sentiments, and whether the experience met their needs.
Simple math, right?
Even though it might seem easy, sticking to the exact steps and phrasing is key to getting a trustworthy result.
What is a good Net Promoter Score?
NPS scores, ranging from -100 to +100, help measure customer satisfaction.
When it comes to assessing your NPS, there are two perspectives to consider:
Absolute NPS:
Evaluates your score in relation to scores across all industries. According to Bain & Company, the creators of NPS, a score:
Above 0 is considered satisfactory
Above 20 is seen as positive
Above 50 is regarded as excellent
Above 80 is considered exceptional
Ideally, aim for a minimum NPS score of +50, indicating a positive customer experience. Anything below 50 may indicate room for improvement.
If your score is above 0, it's a good sign with more promoters than detractors. Scores below 0 indicate bad customer experience and potential growth issues.
Relative NPS:
Compares your score with the average scores of other companies as per your industry standards.
This allows you to gauge how well you fare against your competition, serving as an indicator of successful customer satisfaction.
NPS benchmarks vary from industry to industry. When comparing, focus on direct competitors, not unrelated sectors.
How To Benchmark Your Net Promoter Score? A step-by-step guide
Benchmarking your NPS is like comparing apples to apples - it helps you see where you stand with your competitors.
Keep an eye on how your NPS changes over time, and you'll be on the right track.
Research Industry Benchmarks
Start by researching benchmarks by industry and industry averages to understand the typical NPS ranges for businesses similar to yours.
Gather Customer Feedback
Actively collect feedback from your loyal customers, as well as feedback from detractors. This can be done through surveys, reviews, or direct interactions.
Categorize Feedback
Analyze the feedback received and categorize it into specific areas or themes like Qualitative feedback, and feedback from detractors to identify the strengths and weaknesses of your product or service.
Implement Improvements
Based on the feedback and identified areas for improvement, take actionable steps such as refining features, optimizing processes, or addressing customer pain points to enhance your product or service.
Monitor NPS Changes
Continuously track your NPS over time, and how your efforts impact customer satisfaction. Keep an eye on trends to ensure you're headed in the right direction.
Compare Against Competitors
Evaluate your NPS in comparison to industry averages and, if possible, against direct competitors. This lets you gauge your relative performance and where you may need to catch up or surpass others.
Iterate and Refine
Use benchmarking insights to make ongoing improvements to your product, service, and customer interactions. Keep the feedback loop in motion to analyze customer experience metrics.
Factors Affecting NPS Benchmarks
Now, let's talk about the factors that can sway your NPS benchmarks. It's not just about the score itself, but also about the context behind it. Factors like Market Size and spread, Customer Expectations, and your Competitors can all influence your NPS.
Market Size & Spread
In a nutshell, the larger and more spread out your market is, the more diverse your NPS scores are likely to be. Different cultures and mindsets mean different feedback from customers.
Take Europe, for example - customers tend to be more reserved with negative feedback, while in the US, dissatisfied customers are more forthcoming.
Customer Expectations
What customers expect can vary wildly depending on the industry. Medical customers prioritize expertise and availability, while internet service customers want top-notch customer service. This translates directly to different NPS scores for these industries.
Competitive Forces
Competition isn't just about who's got the best marketing - it has a big impact on NPS scores too. In a fierce market, businesses are pushed to innovate, resulting in better customer service and, in turn, higher NPS scores.
But in a more laid-back environment, where competition isn't as fierce, innovation may slow down, potentially keeping NPS scores from getting that extra boost.
Impact of Global Events
Global events can significantly impact NPS results due to shifting customer expectations. The COVID pandemic, for instance, led to a substantial drop in average NPS scores, particularly among younger demographics.
Industries heavily affected by travel restrictions, such as rental cars, transportation, hotels, credit cards, and airlines, saw the sharpest decline in NPS scores. In contrast, sectors like health insurance, fast food, wireless carriers, and TV/internet service providers were less affected.
6 Ways to Improve Your Net Promoter Score
Alright, let's get down to the nitty-gritty. If you're looking to boost your NPS, there are a plethora of strategies you can employ:
Timing and Personalization
Sending NPS survey questions at the right moment in the customer journey is crucial. For product-based companies, this means waiting a bit after a customer's last purchase.
Additionally, personalizing invites by addressing customers by name can significantly boost response rates.
Asking Insightful Questions
While it's essential to ask if customers would recommend you, it's equally important to provide space for them to explain their ratings. Avoid overwhelming them with too many questions, as this can lead to a drop in response rates.
User-Friendly Surveys and Swift Follow-Up Questions
Design surveys to be user-friendly, steering clear of slow loading times and confusing formats. This ensures accurate NPS results.
Additionally, respond promptly to detractors within 24 hours via email to exceed their expectations and potentially turn them into promoters.
Engaging with Detractors and Nurturing Promoters
Don't solely focus on positive feedback. Take the time to dive into detractors' concerns to uncover underlying issues and increase customer retention.
Simultaneously, reward loyal promoters with incentives like discounts or exclusive products to encourage more brand advocacy.
Leveraging Insights and Empowering Customer Service
Identify recurring themes from promoters' responses and incorporate them into your marketing strategy to impress and convert passives.
Empower your customer service team with some autonomy to find tailored solutions, rather than adhering strictly to rigid rules, for higher customer satisfaction.
Emphasizing Value and Continuous Tracking
In a customer-centric organization, every employee's role is crucial. Recognize and communicate the value each department brings.
Regularly monitor your NPS to gauge your business's health and track improvements over time. It's the key to understanding your customer sentiment.
Using NPS as a Driver for Feedback with 1Flow
By using NPS in your product development process, you can improve your roadmap, focus on features that matter to customers, and create a product that stands out in the market.
Integrating NPS in post-interaction communications gives customers a direct channel to provide feedback on their experience. This real-time feedback loop enables you to address issues promptly and demonstrate your commitment to customer satisfaction.
1Flow offers easy-to-use tools for measuring your NPS directly within your app. This means you can collect valuable customer feedback effortlessly.
You don't need a developer or designer to launch surveys. It's designed with product managers and researchers in mind, making it easy to use without requiring technical expertise.
Insightful Dashboards for User Engagement:
1Flow's pre-built reporting and analytical dashboard allows you to monitor user behavior and campaign performance.
This feature allows for precise timing of flows, messages, and interactions based on event triggers and page URL rules, ensuring maximum user engagement at opportune moments.
Highly Responsive Surveys for Enhanced Feedback:
1Flow's functional dashboard facilitates the creation of surveys that elicit high response rates.
By presenting flows and interactions at the right time, aligned with user actions and goals, you can significantly increase the likelihood of valuable feedback.
Measuring Customer Satisfaction and Loyalty:
Leverage 1Flow's advanced features, including analytical dashboards and localization, to gather accurate feedback and measure customer satisfaction and loyalty.
Generating Data-Backed Customer Personas:
Use feedback from 1Flow surveys to build specific customer personas. These personas help you better understand your audience, leading to better products, services, and customer support.
Enhanced User Experience:
1Flow offers a range of customizable features, including multi-language support, easy integrations, personalized messaging, in-app ratings and reviews, and more.
1Flow is a powerful tool for accelerating research timelines, driving customer-centric improvements, and maximizing the value derived from NPS surveys. Sign up today to turn your Detractors into Promoters and witness the positive impact on your business success.
Running a business always carries the risk of losing your customer base to competitors. The CX Trends 2023 Report found that approximately half of the respondents surveyed would switch to a different brand after just one negative customer experience.
Experiencing a fifty-percent customer turnover can be detrimental to almost any business, highlighting the urgency to focus on customer satisfaction.
As per the Gartner Survey, 81% of marketers consider customer satisfaction to be the primary competition in their industry.
Today, with billions of connected devices facilitating trillions of customer interactions every minute, people are sharing more information than ever. This means that the success or failure of your business can hinge on how satisfied your customers are.
But how can you effectively measure this level of satisfaction?
This brings us to the Net Promoter Score (NPS), a metric that has become the North Star for gauging customer satisfaction.
What is Net Promoter Score?
Net Promoter Score is a simple yet powerful metric that measures customer loyalty. It's like a report card for your product or service, giving you a clear picture of how likely your customers are to recommend you to others, which helps assess your product-market fit.
This score is derived from a simple question survey: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
How do you calculate Net Promoter Score?
To calculate NPS, you can create an NPS Survey manually or by using a tool like 1Flow.
1Flow offers a seamless experience with its no-code survey launch feature, allowing for a swift setup without the need for technical expertise.
The survey will ask customers how likely they are to recommend your product on a scale from 0 to 10.
'0' means 'Not likely at all' and
'10' means 'Very likely'.
Group your respondents into three categories:
Promoters (score 9-10) - Happy customers who had a positive experience with your product and are highly likely to recommend it to others.
As your most enthusiastic customers, they are inclined to endorse your brand through positive online reviews, active involvement on social media, and recommending the product or service to their friends.
Passives (score 7-8) - These are somewhat satisfied customers, but they may not actively promote your product.
Detractors (score 0-6) - These are unhappy customers who may have had a negative experience and may spread negative feedback about your product. They're not loyal and might stop using your product or service, which is a big risk of “churn”
Once the survey is completed, use this formula:
NPS = Percentage of Promoters - Percentage of Detractors
This calculation yields a score between -100 and +100, where a higher positive score indicates better results, with anything surpassing +70 signifying a top-tier product in the market.
The results from customers can provide valuable insights into their perception of the
organization, their sentiments, and whether the experience met their needs.
Simple math, right?
Even though it might seem easy, sticking to the exact steps and phrasing is key to getting a trustworthy result.
What is a good Net Promoter Score?
NPS scores, ranging from -100 to +100, help measure customer satisfaction.
When it comes to assessing your NPS, there are two perspectives to consider:
Absolute NPS:
Evaluates your score in relation to scores across all industries. According to Bain & Company, the creators of NPS, a score:
Above 0 is considered satisfactory
Above 20 is seen as positive
Above 50 is regarded as excellent
Above 80 is considered exceptional
Ideally, aim for a minimum NPS score of +50, indicating a positive customer experience. Anything below 50 may indicate room for improvement.
If your score is above 0, it's a good sign with more promoters than detractors. Scores below 0 indicate bad customer experience and potential growth issues.
Relative NPS:
Compares your score with the average scores of other companies as per your industry standards.
This allows you to gauge how well you fare against your competition, serving as an indicator of successful customer satisfaction.
NPS benchmarks vary from industry to industry. When comparing, focus on direct competitors, not unrelated sectors.
How To Benchmark Your Net Promoter Score? A step-by-step guide
Benchmarking your NPS is like comparing apples to apples - it helps you see where you stand with your competitors.
Keep an eye on how your NPS changes over time, and you'll be on the right track.
Research Industry Benchmarks
Start by researching benchmarks by industry and industry averages to understand the typical NPS ranges for businesses similar to yours.
Gather Customer Feedback
Actively collect feedback from your loyal customers, as well as feedback from detractors. This can be done through surveys, reviews, or direct interactions.
Categorize Feedback
Analyze the feedback received and categorize it into specific areas or themes like Qualitative feedback, and feedback from detractors to identify the strengths and weaknesses of your product or service.
Implement Improvements
Based on the feedback and identified areas for improvement, take actionable steps such as refining features, optimizing processes, or addressing customer pain points to enhance your product or service.
Monitor NPS Changes
Continuously track your NPS over time, and how your efforts impact customer satisfaction. Keep an eye on trends to ensure you're headed in the right direction.
Compare Against Competitors
Evaluate your NPS in comparison to industry averages and, if possible, against direct competitors. This lets you gauge your relative performance and where you may need to catch up or surpass others.
Iterate and Refine
Use benchmarking insights to make ongoing improvements to your product, service, and customer interactions. Keep the feedback loop in motion to analyze customer experience metrics.
Factors Affecting NPS Benchmarks
Now, let's talk about the factors that can sway your NPS benchmarks. It's not just about the score itself, but also about the context behind it. Factors like Market Size and spread, Customer Expectations, and your Competitors can all influence your NPS.
Market Size & Spread
In a nutshell, the larger and more spread out your market is, the more diverse your NPS scores are likely to be. Different cultures and mindsets mean different feedback from customers.
Take Europe, for example - customers tend to be more reserved with negative feedback, while in the US, dissatisfied customers are more forthcoming.
Customer Expectations
What customers expect can vary wildly depending on the industry. Medical customers prioritize expertise and availability, while internet service customers want top-notch customer service. This translates directly to different NPS scores for these industries.
Competitive Forces
Competition isn't just about who's got the best marketing - it has a big impact on NPS scores too. In a fierce market, businesses are pushed to innovate, resulting in better customer service and, in turn, higher NPS scores.
But in a more laid-back environment, where competition isn't as fierce, innovation may slow down, potentially keeping NPS scores from getting that extra boost.
Impact of Global Events
Global events can significantly impact NPS results due to shifting customer expectations. The COVID pandemic, for instance, led to a substantial drop in average NPS scores, particularly among younger demographics.
Industries heavily affected by travel restrictions, such as rental cars, transportation, hotels, credit cards, and airlines, saw the sharpest decline in NPS scores. In contrast, sectors like health insurance, fast food, wireless carriers, and TV/internet service providers were less affected.
6 Ways to Improve Your Net Promoter Score
Alright, let's get down to the nitty-gritty. If you're looking to boost your NPS, there are a plethora of strategies you can employ:
Timing and Personalization
Sending NPS survey questions at the right moment in the customer journey is crucial. For product-based companies, this means waiting a bit after a customer's last purchase.
Additionally, personalizing invites by addressing customers by name can significantly boost response rates.
Asking Insightful Questions
While it's essential to ask if customers would recommend you, it's equally important to provide space for them to explain their ratings. Avoid overwhelming them with too many questions, as this can lead to a drop in response rates.
User-Friendly Surveys and Swift Follow-Up Questions
Design surveys to be user-friendly, steering clear of slow loading times and confusing formats. This ensures accurate NPS results.
Additionally, respond promptly to detractors within 24 hours via email to exceed their expectations and potentially turn them into promoters.
Engaging with Detractors and Nurturing Promoters
Don't solely focus on positive feedback. Take the time to dive into detractors' concerns to uncover underlying issues and increase customer retention.
Simultaneously, reward loyal promoters with incentives like discounts or exclusive products to encourage more brand advocacy.
Leveraging Insights and Empowering Customer Service
Identify recurring themes from promoters' responses and incorporate them into your marketing strategy to impress and convert passives.
Empower your customer service team with some autonomy to find tailored solutions, rather than adhering strictly to rigid rules, for higher customer satisfaction.
Emphasizing Value and Continuous Tracking
In a customer-centric organization, every employee's role is crucial. Recognize and communicate the value each department brings.
Regularly monitor your NPS to gauge your business's health and track improvements over time. It's the key to understanding your customer sentiment.
Using NPS as a Driver for Feedback with 1Flow
By using NPS in your product development process, you can improve your roadmap, focus on features that matter to customers, and create a product that stands out in the market.
Integrating NPS in post-interaction communications gives customers a direct channel to provide feedback on their experience. This real-time feedback loop enables you to address issues promptly and demonstrate your commitment to customer satisfaction.
1Flow offers easy-to-use tools for measuring your NPS directly within your app. This means you can collect valuable customer feedback effortlessly.
You don't need a developer or designer to launch surveys. It's designed with product managers and researchers in mind, making it easy to use without requiring technical expertise.
Insightful Dashboards for User Engagement:
1Flow's pre-built reporting and analytical dashboard allows you to monitor user behavior and campaign performance.
This feature allows for precise timing of flows, messages, and interactions based on event triggers and page URL rules, ensuring maximum user engagement at opportune moments.
Highly Responsive Surveys for Enhanced Feedback:
1Flow's functional dashboard facilitates the creation of surveys that elicit high response rates.
By presenting flows and interactions at the right time, aligned with user actions and goals, you can significantly increase the likelihood of valuable feedback.
Measuring Customer Satisfaction and Loyalty:
Leverage 1Flow's advanced features, including analytical dashboards and localization, to gather accurate feedback and measure customer satisfaction and loyalty.
Generating Data-Backed Customer Personas:
Use feedback from 1Flow surveys to build specific customer personas. These personas help you better understand your audience, leading to better products, services, and customer support.
Enhanced User Experience:
1Flow offers a range of customizable features, including multi-language support, easy integrations, personalized messaging, in-app ratings and reviews, and more.
1Flow is a powerful tool for accelerating research timelines, driving customer-centric improvements, and maximizing the value derived from NPS surveys. Sign up today to turn your Detractors into Promoters and witness the positive impact on your business success.
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