What is a good NPS?
The Net Promoter Score – or NPS – is a measure of customer loyalty to a brand or company. The higher the score, the more loyal the customer. But what exactly is a good NPS? Dave Wurms from Focus Feedback tries to answer this question.
I regularly receive this question from Focus Feedback clients. And very understandably so. Everyone wants to know whether or not they are doing well.
Nothing is more human than the desire for (positive) recognition.
But there is no short answer to this question.
Positive is good
In general, you can claim that a positive NPS is good. You then have more promoters than detractors: more people who recommend you or are willing to buy again, than people who do not intend to or will even advise against your organization. That in itself is positive, but it is not quite the full picture.
It is more important to see how your competitors are doing. Do you have a higher score? Then according to the NPS method there is a good chance that you will do better in the market and that you will also grow faster than your competition.
In many cases this is a good indicator, but don’t let yourself be guided too much by it. You can take a sector average, but unfortunately that doesn’t mean everything.
Many similar companies measure the NPS, but on the basis of different processes.
One may place the emphasis on measuring the NPS after a purchase moment. The other may measure it based on the aftercare process.
This also entails monitoring complaints handling. You can imagine that in general this NPS is a lot lower than that of the purchasing process. As a result, you are comparing apples and oranges.
What is a good NPS? I don’t have the ultimate answer for you. But we believe that the only good NPS is an NPS that is rising.
Did you have an NPS of -20 last year? Then it must be higher this year.
But always keep in mind that the most important thing about the NPS methodology is the “free advice” of your customers. They indicate exactly where you perform well and where improvements are needed.
Take pleasure in getting a little better every day. That is quite a lot of steps per year. You have gold in your hands to be able to excel.
I wish you a great NPS journey.