The scale and formula were developed in 2003 by Fred Reichheld, partner at Bain & Company and author of The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World. In the present, we use a more advanced version of the method.
When surveying customers, they are asked a simple question, “How likely is it that you would recommend the company to a friend?” As an answer, a person chooses a score from 0 to 10. Millions of companies around the world effectively use this approach.
How to calculate NPS score
When calculating the consumer loyalty index, three indicators are used, respectively, according to the scores:
- 0 to 6 – Critics: Dissatisfied Customers will discourage others from buying your service or product.
- 7 and 8 – passive: as a rule, not too happy, but not categorically. They may prefer a competitor to you.
- 9 and 10 – promoters: those who will happily praise you and advise you to friends and family.
The calculation formula itself looks like this:
NPS score = % promoters – % critics
Let’s consider an illustrative example. If your survey data is 80% promoters, 15% detractors, and 5% passive, then the formula is calculated as follows:
80% – 15% = 65%
This percentage of customers rate the company as recommended for others.
Main factors that affect NPS score
There are a variety of factors that influence consumer evaluation. They may vary depending on the company’s industry – we will tell you about the general ones for all categories. There are 6 of them:
- Level of customer support. Prompt, polite, and attentive resolution of customer problems and questions with the help of technical support, social networks, and other forms of communication is a factor that can correct even the company’s shortcomings and malfunctions. If such support is missing or not appropriately provided, the factor can negate even the best quality services.
- Product performance. This includes relevance, meeting customer expectations and requirements, practicality, value for money, and other specific factors for your niche. For example, for some types of business, the list can be supplemented by the speed of delivery.
- Competitiveness. The number of opponents directly affects the percentage of positive evaluation. The more companies that provide a similar product, the more difficult it is to increase the NPS score. In areas with very few competitors, users are more satisfied with the product.
- Brand reputation. It affects customers’ opinions from the very beginning – from the moment of ordering or choosing a product. It determines the mood with which a person comes to you.
- Safety. The protection of personal data, the absence of leakage, and the guarantee of security significantly increase the level of trust in the company.
- The quality and speed of the site. This also includes poor integration with other systems. Such an inconvenience in use can significantly change the client’s attitude towards the company and the product.
By eliminating the main shortcomings, you improve customer relations with the company and provide yourself with a higher NPS score.
Why should I choose Plerdy to get NPS score?
By hosting an NPS poll from Plerdy on your page, you get more than just the standard option to choose an answer. The functionality of this tool includes the following facets:
- Setting up polls. You can customize the questions for yourself change the interface, taking into account the specifics of the brand and corporate style design.
- Automated calculation. Get automatic real-time index calculation.
- Change monitoring. To avoid the backlash, you can create surveys to let visitors know how comfortable the new features are.
- Convenient reports. Visual reports with diagrams will show at what stage something went wrong and why users left negative or passive feedback.
All data is collected automatically. You can place a Net Promoter Score survey at different funnel stages and improve your understanding of your customers.
What is the good NPS score by industry?
As already mentioned, the factors influencing NPS depend on the scope. Like the indicators themselves, what is suitable for one niche will only contribute to losses for another. What are the features of each of the directions? Let’s look at benchmarks.
IT is about providing computer services. This includes computer services related to data storage and cloud platforms based on artificial intelligence. The NPS score in this area is 42%, 22%, and 3% – the maximum, average, and minimum, respectively.
The category includes:
- Medical institutions.
- Intermediary companies between the patient and the hospital.
- The production of specialized equipment and medicines.
The maximum, average, and minimum NPS score is 66%, 41%, and 19%.
E-commerce companies are B2B and B2C companies whose scope is to provide commercial transactions through digital channels. These are online stores and websites with services. The maximum NPS score is 60%, the average is 39%, and the minimum is 19%.
The industry combines two categories of companies – direct producers and online platforms for ordering food. The maximum, average, and minimum NPS score is 58%, 29%, and 13%.
Financial services and finance-related companies include investing, mortgage refinancing, and retirement solutions. The maximum, average, and minimum NPS score is 60%, 39%, and 21%.
Education refers to educational institutions (including commercial platforms and schools) and educational research programs. The maximum, average, and minimum rates are 64%, 45%, and 29%.
A comprehensive group includes all leisure and entertainment companies – from animation studios to event agencies. The maximum, average, and minimum NPS score is 39%, 21%, and -2%.
They are engaged in constructing buildings, roads, bridges and often also in the design and selection of employees. The industry with the lowest rates is -9%, -1%, and -22%.
Top-10 companies with good NPS score
Companies with a high percentage of NPS are the standard to be guided by. Consider the world’s top companies with a positive assessment.
The South Korean conglomerate has an NPS of 67%. The corporation is divided into smaller conglomerates and is present in several industries. The most famous is electronics, followed by others: advertising, entertainment, information technology, construction.
Apple is an American technology company with an NPS of 63%. The primary industries in which the company occupies a significant place are electronics, software development, financial. The company is engaged in developing and creating technology and programs and is represented in corporate venture capital.
Costco Wholesale Corporation
Costco has a high NPS of 79% in consumer goods and retail. A narrowly focused company that retails and wholesales high-quality deli, organic products to club members. Marketed in the US, Canada, Mexico, UK, Japan, South Korea, Taiwan, Australia, and Spain.
The world-famous computer technology and software company has an NPS score of 50%. In addition to cloud storage, the company has created applications for Windows and macOS, Android, and iOS. Among its products are also Google Docs, Sheets, and Slides.
One of Google’s subsidiaries is a video sharing feed. YouTube an NPS of 59%. As part of the affiliate program, the site hosts not only videos of individuals but also media corporations – for example, the BBC, Vevo, and Hulu. YouTube belongs to the category of Internet companies.
A company with a network of coffee houses also sells fast food and merchandise such as branded cups and thermal mugs. NPS score is 77%. It is part of the food industry.
Asus Tek Computer Inc.
The Taiwanese computer hardware and electronics company ranks 4th in the world in terms of shipments. NPS score – 77%. Products include laptops, motherboards, monitors, projectors, and more.
Nikon is a Japanese corporation with a Net Promoter Score of 65%. As of 2017, it was the 8th largest company specializing in optical equipment, cameras, lenses, and imaging products.
The hosting service has an NPS score of 73%. The web platform provides free and paid VIP hosting services to more than 40% of website owners. It is part of the software industry.
Disney is the world’s second-largest media conglomerate, has an NPS score of 73%, and is part of the entertainment industry. In addition to the film and cartoon production studio also owns theme parks, the ABC broadcast television network, cable channels, etc.
NPS score measures quality, so you should pay close attention to how customers perceive you. Using tools for collecting and analyzing data, you can understand your audience and gaps. By correcting them, you will increase the customer loyalty index.