Net Promoter Score

Net Promoter Score® (NPS) is a widely used metric for assessing customer experience and loyalty. It gauges how satisfied customers are with a business and how likely they are to recommend it to others.

Net Promoter Score operates through a straightforward survey. Businesses send out a survey with the key NPS question: “How likely are you to recommend this company to a friend or colleague?”

The NPS categorises respondents into three groups based on their loyalty and satisfaction. Each category is defined by how respondents answer the key NPS question.

Here’s a breakdown of each group:

  • Detractors (0-6): Unsatisfied customers, unlikely to make repeat purchases, and may even dissuade others from using your business.
  • Passives (7-8): Satisfied but unenthusiastic customers who could switch to competitors for better deals or features.
  • Promoters (9-10): These are brand advocates. They recommend your business to others, organically boosting your reputation.

NPS is calculated by subtracting the percentage of detractors from the percentage of promoters (% of promoters – % of detractors). This simple formula helps businesses gauge overall customer sentiment and loyalty.

Determining a good Net Promoter Score varies by industry, company size, and market context.  Here are two key points to consider when benchmarking the NPS score:

  1. Global Benchmarks:
    1. Average NPS: The global NPS average is +32.
    2. Median NPS: The median is +44, indicating half score below and half score above this figure.
  2. Industry-specific benchmarks:
    1. Professional Services: Average NPS of +43, with top performers reaching +73 or higher.

 

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