How Good is Your NPS? Using Industry Benchmarks
Understanding how good your Net Promoter Score can be difficult. We've compiled benchmarks from 15 industries so that you can see how your Net Promoter Score compares with the competition in your industry.
Wondering what industry might have the lowest average NPS? If the answer isn't obvious, let me ask you this - have you ever had to call your internet or mobile provider to update or cancel your service and been put on hold for hours? Ever complained to a friend about your telecommunications provider? We've all been there.
Yep, the answer is the telecommunications industry with an average NPS of 24 in 2018. Ouch. Though, the telecommunications industry average here is also averaged out over internet service providers and telephone companies. The industry average for internet service providers is a shockingly low -1. Double ouch.
But if you're looking at the results of your customer feedback survey and wondering how to judge whether your NPS is good or not - you'll have to use your own industry benchmarks. The good news is that if your industry is telecommunications, the bar is quite low. We've created some beautiful bar graphs below, using Displayr. Find out where you are in relation to the industry average for 2018 below! Thanks Satmetrix for the data.
What does it mean?
Of course, companies with higher Net Promoter Scores compared to the industry average will grow faster than those below the average. Why? Customers are four times as likely to buy a product when they are recommended it by a friend and new referral customers have 16% higher lifetime value. Not only is a high NPS important for new customer acquisition, but it is crucial for developing customer loyalty and hence retention. It is from five to twenty-five times more expensive to acquire a new customer than it is to retain an existing. An increase in customer retention can dramatically increase profits.