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Many industry leaders conduct surveys regularly to evaluate the NPS for their business. This enables them to establish a Benchmark to figure out their performance in the market and improve the loyalty of their customers towards the brand.

On another hand, benchmarks also provide you with a clear insight into how the other organizations or leaders delivering the best customer experiences in each industry. These NPS standards help you to prioritize your customer experience strategies and tailor your business to your customer needs.

What is a 'Good' & 'Bad' Net Promoter Score?

Net Promoter Scores range from -100 to +100 that can be categorized into ‘good,’ ‘bad,’ or ‘neutral'. Usually, people consider any score above 0 as a positive score and score below the 0 as a negative score.

In the NPS industry, scientific sampling methods are considered to be the standard method to conduct the NPS survey. A score of 60 or 60+ score is generally considered as a very good NPS in any industry. When your detractors are more than your promoters the score will be negative. are unequivocally bad (since they mean you have more detractors than promoters.

How Different Industries Calculate Net Promoter Score?

An average Net Promoter Score may differ for various industries. What is acclaimed as a good Net Promoter Score for one industry can be considered a bad Net Promoter Score for another industry? When you are trying to decide whether your NPS® is a good or a bad score, compare it to your competitors within your industry.

nps-by-industry Copyright Satmetrix

There are a lot of industries currently using the Net Promoter Score. What can be considered as an “ideal” NPS score depends on the industry type, and the products or services provided by your company.

The average Net Promoter Score for different industries can be diverse. Thus, qualifying NPS scores for individual organizations as good or bad would depend on the different industries themselves based on the ongoing industry trend.

What are the Factors that Affect the NPS Benchmark?

Your Average Net Promoter Score never remains constant, it varies between industries and countries. That’s why it is being suggested that you should gain extensive knowledge and detailed understandability of NPS Benchmark. In one of his interviews, Rob Markey listed 3 factors that influence the Net Promoter Score Benchmark:

Expanded Experience & Skill in Industry

With the passage of time, companies and industry leaders always look for new changes and innovations to redefine the customer experience. Thus, to achieve this, they expand their capabilities by expanding skills in their team. Accumulation of skills and experience plays a major role in NPS Benchmark. Top-notch level of expertise and extensive experience enable the industry leaders to make a breakthrough in their product/service. Thus, expansion in skills & experience in the industry not only takes industry leaders a level ahead of their competitors but also enables them to set a new NPS Benchmark.

Various External Forces

As we are all aware that there are some business factors that are completely out of our control. These factors are basically External Forces that affect the Net Promoter Score. Various external forces including economic, political, and eventual factors influence the NPS Benchmark.

For instance, there is a decline in the NPS Benchmark of the investment management firm when the stock market drops.

Demand & Supply

Demand and Supply are the two elemental factors that play a crucial role in NPS. Sometimes lots of competitors target the same types of customers. In this scenario, they give more priorities to customer relationships rather than revenue and profit.