Q&A: How Do You Determine a Good NPS Score? (With Tips)

By Indeed Editorial Team

Published September 29, 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Net promoter scores are metrics that businesses may use to determine the quality of their customers' experience. Calculating this score can help you understand how customers feel about your company in relation to other companies in the same industry. Learning how to calculate an accurate NPS score can also aid you in improving your company's overall performance, encouraging customer loyalty and boosting customer retention.

In this article, we define good NPS scores, explain how to calculate them, review why these scores are important, list methods of measurement and provide tips to help you determine whether your score is accurate.

Related: 11 Best Practices in Customer Experience

What is a good NPS score?

A good NPS score, or a net promoter score, is a metric that shows the likelihood that customers may recommend your business. Your company's marketing team may use this score to help them understand customer satisfaction and retention. You could calculate this by asking customers how likely they are to recommend your company to friends or family members on a scale from one to 10.

Depending on the method of scoring you use, the number necessary for a good score can vary. Customers often rate a company based on their experiences and companies can earn a score anywhere between -100 to 100. While a good score is relative to your industry, many companies consider a score above 0 to be good.

What is an NPS score calculation?

There are three categories of consumers needed to calculate an NPS score:

  • Detractors: Detractors are people who give a company a score of zero to six out of 10. They're often customers who may be unlikely to recommend your business to others.

  • Passives: Passives are people who give the company a score of seven to eight out of 10. They may feel satisfied with your brand or company, but they may not recommend it to others.

  • Promoters: Promoters are people who give the company a score of nine to 10 out of 10. Highly satisfied customers may give your company this rating and can help it grow its customer base.

To calculate NPS, you can use the following formula:

NPS = Percentage of promoters − percentage of detractors

Since passives may or may not recommend your business, NPS scores only include information about promoters and detractors.

Read more: Learn How To Calculate NPS

Why is NPS scoring important?

NPS scoring is important for all types of organizations, but especially for large companies. This is because large companies sometimes make their NPS scores public, helping consumers evaluate the quality of their products or services. Small businesses may also publicize their numbers if they're positive to show prospective customers how others respond to their company. Sharing your company's NPS score can also help show your awareness of consumer needs. NPS scores can also benefit companies by allowing them to:

  • Evaluate customer satisfaction: Since NPS scores are measurements of customer satisfaction, determining your company's score can help you understand the customer experience more deeply. Monitoring this metric can also help you identify any potential improvements if you notice any shifts in the score.

  • Understand customer loyalty: Knowing your company's current NPS score may help you predict how many customers may become repeat customers who advocate for your brand.

  • Increase business growth: Having a high percentage of promoters means many customers may be interested in recommending your company to others, which may contribute to business growth as new customers make purchases.

Related: 23 NPS Questions To Learn From Customer and Employee Experiences

What is the absolute NPS method?

The absolute NPS method is a measurement of customer satisfaction on a scale of -100 to 100. Rather than measuring industry standards, this method can help companies evaluate the customer experience and learn about customer loyalty. While scores above 0 are positive, many companies strive to earn a score of 50 or higher to show that their customers are mostly promoters. The ranges in the absolute method are:

  • -100 to zero: A negative score indicates that a business has more detractors or passives than promoters. This shows that people are less likely to recommend the company to others, causing prospective consumers to consider making purchases from competitors.

  • One to 30: A low positive score indicates that your company has more promoters or passives than detractors, but that there are areas in which the company could improve. NPS scores in this range often have a certain percentage of detractors who may report a negative customer experience.

  • 31 to 50: This common NPS score indicates a company has more promoters than detractors. This shows prospective consumers that although some people may have had a negative customer experience, many more would recommend your company.

  • 50 to 70: A score in this range shows that customers are happy and willing to recommend your brand. Many companies can strive for this score, which can help them attract prospective consumers.

  • 71 to 100: This is the highest possible score, and it can show that your business performs effectively. With many people recommending your business and prospective consumers choosing to purchase goods and services based on positive reviews, you might see an increase in business with this score.

Related: Everything You Need To Know About Customer Satisfaction

What is the relative NPS method?

The relative NPS method is how your company's NPS score ranks among industry benchmarks. Many public corporations publicize their NPS scores to show consumers how past customers feel about your brand. Some of the common industry benchmarks are:

  • Automotive industry: 33 to 63

  • Software industry: 28 to 55

  • Computer industry: Eight to 60

  • Health insurance industry: 19 to 68

  • Network and internet provider industry: Two to 33

  • Supermarket industry: 20 to 59

  • Banking industry: 17 to 62

  • Airline industry: 18 to 55

Tips for calculating an accurate NPS score

There are several ways you can ensure you calculate an accurate NPS score for your business:

  • Measure frequently: As your business changes, the customer experience can change. Measuring your NPS score frequently can help ensure you gather the most accurate results.

  • Choose a delivery method: You might provide surveys on your website, through email or in person. Consider using a consistent delivery method to ensure customers can access surveys and respond to them easily.

  • Remain objective: When introducing a survey, consider offering objective descriptions that detail what the customer can expect. This can help the customer provide an accurate review of your company.

  • Segment customers: If your company offers a variety of products or services, try to collect data for each customer category. This is especially effective for large companies, since customers may have unique experiences when interacting with different departments.

  • Be consistent: Consider choosing a point in the purchasing process, such as after a customer has completed a purchase or when they've received an item in the mail. Sending the survey at the same time in the purchasing process can help you collect data about a specific customer experience.

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