One of the most reliable tools businesses use today for measuring customer sentiment is the Net Promoter Score (NPS). But the question many companies struggle with is: What is a good Net Promoter Score? More importantly, how do you achieve it, and why does it matter for reducing business churn and boosting loyalty?
This guide will give you the full picture—from understanding NPS benchmarks to developing strategies that improve your NPS score and ultimately enhance customer loyalty.
What Is a Net Promoter Score (NPS)?
NPS is a popular customer experience metric that measures customer loyalty and predicts business growth. It’s based on a simple yet powerful customer survey question:
This NPS score question categorises respondents as:
- Promoters (9-10): Loyal enthusiasts of your brand.
- Passives (7-8): Satisfied but unenthusiastic customers.
- Detractors (0-6): Unhappy customers who can damage your reputation through negative word-of-mouth.
The final NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
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What Is a Good Net Promoter Score?
So, NPS—what is a good score? There isn’t a universal answer because what’s considered a “good” NPS depends on several factors, like your industry, customer expectations, and geographical region.
Here’s a general rule of thumb:
- NPS below 0: Concerning. You have more detractors than promoters.
- NPS of 0-30: Acceptable, but there’s room for improvement.
- NPS of 30-50: Good. You’re doing well and have solid customer loyalty.
- NPS of 50-70: Excellent. Customers are very loyal and likely to recommend you.
- NPS of 70+: World-class. This is considered the holy grail and is hard to achieve.
If you’re wondering what is a GREAT Net Promoter Score, it’s generally anything above 70. Companies like Apple and Tesla often achieve these elite scores because they deliver consistently exceptional customer experiences.
NPS Benchmarks by Industry
To give context to what is considered a good NPS score, here are some NPS benchmarks across industries (data sourced from recent reports and customer experience consulting firms):
| Industry | Average NPS |
| Financial Services | 34 |
| SaaS & Technology | 40 |
| Healthcare | 58 |
| eCommerce & Retail | 50 |
| Telecommunications | 24 |
| Logistics & Transportation | 35 |
Understanding your industry’s NPS benchmarks helps you measure customer experience performance against competitors.
Why Does NPS Matter?
Your NPS is more than just a number—it’s a reflection of customer loyalty, retention rates, and your ability to reduce business churn. A low score can be an early warning sign of churn and customer dissatisfaction. What is business churn? Business churn refers to the rate at which customers stop doing business with a company. It is a critical metric that indicates customer dissatisfaction and can have a significant impact on a company’s revenue and growth.
A good NPS correlates directly with higher customer retention management success and improved sales retention.
How to Achieve a Good NPS Score (or Even a Great One!)
Achieving a good NPS score isn’t luck. It’s a result of a thoughtful customer experience strategy and continuous improvement. Here’s how to do it:
1. Collect Feedback Consistently
Use customer satisfaction surveys (CSAT), NPS surveys, and other customer experience measurement tools regularly. Gather insights, act on them, and close the loop with customers, especially your detractors.
2. Act on Customer Feedback
Closing the loop with customers is where the magic happens. Respond to detractors swiftly, offer solutions, and turn potential churn into loyalty. Promoters should be nurtured with loyalty programs or referrals.
3. Engage Employees
Employee behaviour directly impacts the customer experience. Engaging employees—especially frontline staff—is key. As discussed in our recent webinar, recognising employees for positive customer feedback and engaging them in your CX program translates into better customer interactions.
4. Personalise Customer Interactions
Leverage customer experience measurement tools and CRM data to personalise communication and support. Personalisation improves customer satisfaction and boosts your NPS.
5. Monitor Customer Experience KPIs
Don’t rely solely on NPS. Use it alongside other customer experience metrics like CSAT, Customer Effort Score (CES), and customer churn rates to get a complete picture.
NPS Success Story: A Case Study by Cofidis and Staffino
If you’re wondering whether a significant NPS improvement is possible, Staffino’s case study proves it is. A leading finance company was struggling with detractors and low loyalty.
By implementing Staffino’s NPS improvement plan, they:
- Achieved year-over-year NPS increase of 15 pp.
- Cut the detractors by 5.9% between 2021 and 2022 by identifying and fixing key service gaps.
- The agents’ CSAT score was 4.84 out of 5, indicating that clients were highly satisfied with the employees’ approach.
Read the full case study here.
NPS vs CSAT: Which Should You Use?
NPS vs CSAT, CSAT vs NPS, that’s the question. While NPS measures loyalty and predicts future behaviour, CSAT focuses on immediate satisfaction with specific interactions. Both are essential customer experience KPIs, but NPS gives you a big-picture view, while CSAT dives into specific moments.
Watch Our Expert-Led Webinar on NPS Improvement
In our recent session, CX experts shared insights on spotting declining NPS signs, real-time issue resolution strategies, and client success stories. Check it out!
Start Your Journey Towards a Great NPS Today!
Remember, measuring and improving your NPS isn’t just about numbers—it’s about improving relationships and turning detractors into promoters to achieve long-term revenue growth.
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