What is a good NPS score? Benchmarking & improvement tips

Net promoter score (NPS) measures customer loyalty by asking customers how likely they are to recommend your company to others. NPS has gained widespread adoption across industries due to its straightforward approach and effectiveness in gauging customer sentiment. However, many businesses struggle with understanding what constitutes a “good” score, as it can vary significantly by industry. 

So let’s answer that very question, explore how NPS is calculated, what benchmarks are considered good across various industries, and offer some practical tips for improving your NPS. We’ll provide both theoretical insights and actionable steps to help you enhance customer loyalty and satisfaction. Let’s dive in! 

What is a “good” NPS score?

Net promoter score is a powerful tool for assessing customer loyalty and satisfaction. The principle is simple. Your customers receive a survey, and the results are scored on a scale ranging from -100 on the low end to +100 on the high end. The goal of measuring this metric is ultimately to predict business stability and improve customer relationships.

A good NPS score is generally considered to be above 50, indicating strong customer satisfaction and loyalty, but here’s a breakdown of what different NPS ranges may indicate about your business performance:

• Negative NPS (Below 0): This score suggests significant dissatisfaction among customers. Businesses in this range often face high churn rates and negative word-of-mouth.
  
  
• 0 to 30 (Good): A score in this range is considered decent, indicating that your customers are generally satisfied but there's still room for improvement. Companies with scores in this range are often seen as stable but not exceeding customer expectations, yet.
  
  
• 30 to 70 (Great): This range reflects strong customer satisfaction and loyalty. Many leading companies, like Apple and Amazon, fall into this category, indicating that they excel in customer experience and have a solid base of promoters.
  
  
• 70+ (Excellent): A score above 70 is exceptional and demonstrates that your customers are highly enthusiastic about your brand.

The AskNicely NPS benchmark study reveals that just 6% of companies between 91 and 100, and 17% have an NPS score below 0.

Average NPS scores 

Understanding absolute vs. relative NPS

When evaluating your NPS, it’s important to consider both absolute and relative scores:

• Absolute NPS: This refers to your actual score on the NPS scale. A higher absolute score generally indicates better customer loyalty and satisfaction. For example, a score of 60 is considered excellent regardless of industry standards.
  
  
• Relative NPS: This involves comparing your score to industry averages or competitors. Understanding how your score stacks up against others in your industry provides context and highlights areas for improvement. For example, a score of 50 might be excellent in one industry but average in another.

Check out our NPS survey template below. 

Organizational behaviors by NPS score

Understanding how different NPS scores correlate with organizational behaviors can provide valuable insights into where your company stands and what it needs to do to improve. 

Here’s a breakdown of behaviors commonly associated with varying levels of NPS:

World-class NPS (70+ — top 10% of industry)

Organizations achieving a world-class NPS of 70 or higher exhibit exceptional customer loyalty and satisfaction. They typically demonstrate the following behaviors:

• Strong executive support: Executives not only support NPS but actively use it as a strategic tool for growth and decision-making.
  
  
• Low churn rates: Annual net churn is often below 5%, with some companies even experiencing net-negative churn, where new customers outpace those leaving.
  
  
• Significant revenue growth: These companies often see more than 100% revenue growth, reflecting their ability to leverage loyal customers for expansion.
  
  
• High retention: They enjoy higher customer retention and lower churn rates compared to their competitors, setting them apart in the market.
  
  
• Competitive edge: These organizations consistently outpace competitors in both growth and customer retention, demonstrating superior performance.

Good NPS (30 to 70 — Top 20% of industry)

Companies with a good NPS in the 30 to 70 range are typically strong performers in their sector. They show the following characteristics:

• Customer-centric strategies: These companies focus on creating strategies that turn customers into brand advocates, driving growth through positive word-of-mouth.
  
  
• Internal support for NPS: There is a strong internal awareness and support for NPS as a key metric for growth and customer satisfaction.
  
  
• Moderate churn rates: Annual net churn ranges from 6% to 15%, indicating a steady, though not exceptional, level of customer retention.
  
  
• Solid revenue growth: These businesses often experience revenue growth between 51% and 100%, reflecting their effective customer engagement and retention strategies.

Mediocre NPS (0 to 30 — bottom 30% of industry)

Organizations with a mediocre NPS score of 0 to 30 often face significant challenges:

• High churn rates: These companies may experience annual churn rates exceeding 40%, indicating problems with customer retention.
  
  
• Limited revenue growth: Revenue growth tends to be modest, ranging from 5% to 10%, or even showing an overall decrease in sales.
  
  
• Competitive Lag: These organizations often lag behind their competitors, struggling to maintain market position and customer loyalty.

The moving target of a "Good" NPS score

It's important to recognize that a "good" NPS score isn't a static achievement but a moving target. What constitutes a good score can vary based on industry standards, market dynamics, and evolving customer expectations. Regularly benchmarking your NPS against industry standards and competitors is crucial for understanding your position and identifying areas for improvement.

How is NPS calculated?

NPS is a straightforward yet powerful metric that gauges customer loyalty and the likelihood of customers recommending your product or service to others. The core question in an NPS survey is:

“On a scale of 0-10, how likely are you to recommend our product/service to others?”

Framing the question: The way this question is framed is crucial. It should be clear, concise, and focused on the customer's overall experience. Survey timing and context also play a significant role in the responses you receive. For example, asking for feedback immediately after a customer service interaction might yield different insights compared to a survey sent weeks later.

Categories of respondents: NPS divides respondents into three key categories, each affecting the overall score differently.

• Promoters (9 to 10): These are your most loyal customers who are enthusiastic about your brand and likely to recommend it to others. They positively influence your score and contribute to your overall growth through word-of-mouth.
  
  
• Passives (7 to 8): These customers are satisfied but not enthusiastic. They neither drive growth nor damage your reputation. While their feedback is positive, they can easily be swayed by competitors.
  
  
• Detractors (0 to 6): These customers are unhappy and may discourage others from using your product or service. They negatively impact your score and can damage your brand through negative word-of-mouth.

NPS calculation formula:

The formula for calculating NPS is as follows 

NPS = % of promoters - % detractors

For example, if 60% of respondents are promoters and 20% are detractors, you NPS would be: 

NPS: 60% - 20% = 40 

This score of 40 indicates a generally positive level of customer loyalty and satisfaction. 

If math isn’t your thing you can use our NPS calculator below.

Comparing NPS with other metrics:

NPS offers unique insights into customer loyalty and the likelihood of positive word-of-mouth, distinguishing it from other metrics:

• Customer satisfaction score (CSAT): Measures how satisfied customers are with a specific interaction or transaction. While CSAT provides immediate feedback on customer satisfaction, it doesn’t gauge overall loyalty or the likelihood of recommendations.
  
  
• Customer effort score (CES): Assesses how much effort customers have to put in to resolve issues or complete transactions. CES focuses on ease of experience rather than overall satisfaction or loyalty.

Industry-specific NPS benchmarks

The notion of a "good" NPS can vary significantly across different industries due to varying customer expectations and experiences. Understanding these benchmarks helps you gauge where you stand in comparison to your industry peers and tailor your strategies accordingly.

Understanding industry variability:

• Technology vs. healthcare: In the tech industry, customers expect rapid innovation and seamless experiences. As a result, technology companies often aim for higher NPS scores, reflecting their ability to deliver cutting-edge solutions and user-friendly products. Conversely, in healthcare, the focus shifts to trust, accuracy, and compassionate care. While speed is less critical, the quality of service and patient satisfaction are paramount. Therefore, healthcare providers may have different NPS benchmarks that emphasize these values.
  
  
• Retail vs. financial services: In retail, convenience and fast service are key drivers of customer satisfaction. Retail customers expect quick resolutions, smooth transactions, and a pleasant shopping experience. On the other hand, financial services customers prioritize security, transparency, and reliability. Financial institutions need to build trust and demonstrate strong security measures, which can influence their NPS differently compared to retail businesses.

Industry benchmarks graph:

To illustrate these differences, we’ve compiled average NPS benchmarks across various industries. The graph below showcases the average NPS for technology, marketing, banking & finance, healthcare, retail, and insurance industries based on data from AskNicely’s benchmark study.

Understanding these benchmarks helps you set realistic goals for your NPS and identify areas for improvement based on industry standards.

6 tips to improve your NPS score

Achieving and maintaining a high net promoter score isn’t a one-time goal, it's an ongoing process. A high NPS reflects a strong commitment to customer satisfaction and loyalty, and while improving your score is entirely feasible, it requires consistent, focused efforts.

Using the strategies below, New Zealand Home Loans saw a remarkable 13-point improvement in NPS across their bottom-tier locations by implementing targeted strategies.

Here are some actionable tips to help you enhance your NPS:

1. Optimize survey distribution

To get the most accurate and useful feedback, it’s crucial to distribute your surveys effectively. Understand the difference between relationship and transactional surveys to tailor your approach to specific customer interactions. For insights on when to send your surveys for maximum impact, check out: Best time to send NPS surveys: 2024 tips & best practices.

2. Increase feedback frequency

Regular, real-time NPS feedback helps you stay on top of customer sentiment and catch issues before they escalate. By increasing the frequency of your surveys, you can gather more data, spot trends, and make timely improvements. 

3. Leverage modern CX tools and technology‍

Utilizing advanced CX tools and technology can significantly enhance your ability to collect, analyze, and act on feedback. Modern CX platforms streamline these processes, providing deeper insights and more effective solutions. 

4. Follow-up on feedback (especially with detractors)

‍Responding to feedback, particularly from detractors, is crucial for improving customer satisfaction. Addressing concerns directly shows customers that their opinions matter and helps you resolve issues before they affect others. 

5. Enhance customer experience

Improving the overall customer experience is essential for boosting your NPS. Focus on delivering exceptional service and personalized interactions to turn more customers into advocates. For detailed steps on enhancing customer experience across industries, refer to our guide on 3 steps to improve customer experience.

6. Prioritize employee engagement and training

‍Engaged and well-trained employees are key to providing outstanding customer service, which directly impacts your NPS. Invest in employee development to ensure your team is equipped to deliver great experiences. As Mike Carden, CEO of Joyous says: “If you engage employees, then you will get more engaged customers, and happier customers which will in fact lead to engaged employees. Employee engagement actually is the start of a virtuous cycle.” 

By implementing these strategies and continuously striving to improve, you can elevate your NPS and foster stronger customer loyalty. Remember, a good net promoter score is a moving target, and staying ahead requires ongoing commitment and action.

Measure and improve NPS with AskNicely

When it comes to boosting and maintaining a stellar net promoter score, AskNicely stands out as a trusted CX platform utilized by companies across various industries and regions. 

Here’s how AskNicely can help you measure and improve your NPS:

Conversational surveys

Our conversational-style surveys are designed to engage customers across multiple channels, including email, SMS, and in-app messaging. By making surveys more interactive and accessible, AskNicely enhances response rates and provides valuable insights that help your team understand and act on NPS data effectively. 

Automated feedback loops

With AskNicely’s automated feedback loops, you can analyze customer feedback in real time. Our platform prioritizes and routes feedback to the appropriate team members, ensuring that issues are addressed promptly and effectively. This automation streamlines your processes and enhances your ability to improve customer satisfaction. 

Analysis & dashboards

Stay on top of your CX metrics with personalized dashboards and employee digests. AskNicely provides actionable insights through detailed analysis, helping you continuously monitor and enhance your NPS. These tools keep your team focused on customer experience goals and drive ongoing improvement. 

Employee engagement and training

Align your frontline teams with customer satisfaction goals using AskNicely’s real-time coaching tips and personalized performance insights. Our platform supports continuous improvement by engaging and training employees, ensuring they contribute effectively to your NPS objectives. 

With AskNicely, improving your NPS becomes a structured and manageable process. Our features are designed to support every step of your CX journey, from collecting feedback to acting on insights and engaging your team.