![]() ![]() ![]() This straightforward nature makes it an accessible metric for companies of any size and industry. Simplicity – NPS is easy to understand, implement and act upon.The concept of NPS was first introduced in 2003 and, since then, has become a key reference point for businesses aiming to improve the customer experience. Detractors (0-6) : Unhappy customers who may affect your business reputation and growth through negative word-of-mouth.Passives (7-8) : Although satisfied, these customers are not devoted to your brand and may easily switch to a competitor if a better offer is on their radar.Promoters (9-10) : Loyal enthusiasts who will most likely recommend your business to others and help attract new customers.Based on their responses, customers are grouped into Promoters, Passives and Detractors, with NPS being the difference between the percentage of Promoters and Detractors. Net Promoter Score (NPS) is a simple, yet effective metric that measures customer satisfaction and loyalty by asking one key question: “ How likely are you to recommend our company/product/service to a friend or colleague?”. Further on, we will be looking at the absolute values of a good Net Promoter Score across industries, factors affecting NPS benchmarks and steps you need to take when comparing your scores against competitors to get the most out of your NPS score.īut, first things first, so let’s make sure there is a clear understanding of what NPS is. So, from what you can see, Net Promoter Score can vary dramatically, and if you want to figure out whether your NPS score is good or bad, there are a variety of aspects to dig into. While for some businesses, an NPS of 30 might turn out to be the worst in the industry, for others – as being ranked among the market leaders. It essentially means that you cannot say a lot about a company just by looking at its absolute NPS without considering its relative performance within the industry. According to Retently’s NPS data for the past five years, the average Net Promoter Score for Healthcare lies in the range of 34 with the lowest having a value of 20, while the average NPS for Communication & Media– in the range of 19, with the lowest being -6. To prove that, let’s look at the following examples. Behind every customer satisfaction metric, there is a series of factors that influence it. To be honest, benchmarking NPS® is a complicated process. Although we emphasize that the score value is irrelevant, we do understand that comparing the metric to other companies can help gain a more accurate picture of where they stand in the competitive landscape. Check with your local library for access.One of the most frequently asked questions we get from our customers at Retently is “What is a good Net Promoter Score®?”. Replaced by Bizminer and Key Business Ratios Online. Check with your local library for access. One volume, updated annually, organized by NAICS codes.Location: Alden Library no longer subscribes.Almanac of business and industrial financial ratios ![]() Note: Ohio University Libraries no longer subscribes to these three books, but I left the information here as a reference for other researchers, as many libraries still carry these books if they do not subscribe to the more expensive services like Bizminer. The resources below do not have ratios for individual companies, only industry averages. Each of the books below will give different figures for each industry, based upon the average asset size of the companies in the industry. Also, when using the resources, make sure you are comparing similar sized companies. I recommend that you look at all three resources as they do not all cover the same industries. If you are benchmarking a small, private company, or are looking to start a new company, the resources in this section would be most useful to you. ![]()
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