Tesla’s NPS Score: What’s Driving Tesla’s Customer Loyalty?

Tesla is known for having some of the most loyal customers of any company in any industry.

The company’s customers are committed, passionate, and happy to spread the word. In fact, in one survey, 99% of Tesla Model 3 owners said they would recommend the car to their family and friends, and 98% said they’d buy one again.

These are without a doubt incredible statistics—and it should come as no surprise that Tesla’s Net Promoter Score (NPS) is astonishingly high too. Tesla's NPS score is 97 🤯

For a company that doesn’t do conventional advertising, strong positive word of mouth is a must. And that means exceptional customer experience is too.

In this article, we look at the details of Tesla’s NPS, how it compares to industry benchmarks, and how Elon Musk’s company performs so well.

But first, let’s reacquaint ourselves with NPS.

What is NPS?

NPS, or the Net Promoter Score, is one of the central metrics companies use to measure their customer experience. If you want to get an insight into how your customers feel about your products, brand, and customer service, you’ll want to measure NPS.

NPS is powered by a simple question:

On a scale from 0 to 10, how likely is it that you would recommend our company/product/service to a friend or colleague?

Based on their response, customers are placed into three categories:

• Detractors. Citing 0-6 on the scale, your NPS detractors are those customers who are least satisfied with your brand, least likely to recommend it to others, and most likely to churn.

• Passives. 7-8. While they won’t spread negative word of mouth, passives aren’t going to actively refer your business to friends either—unless you nurture and nudge them and turn them into promoters.

• Promoters. 9-10. These are the customers who are really enthusiastic about what you do. They’ll advocate for your brand, bring in new customers, and help you grow—just like the majority of Tesla’s customers.

From these categories, you need to calculate your NPS score, a score out of 100. To do so, subtract the percentage of your detractors from the percentage of your promoters (you can ignore the passives for this calculation).

So, if you have 80% promoters and 10% detractors, you’ll have a NPS score of 70.

Now, that’s a pretty good NPS score—but it’s not as high as Tesla’s.

What is Tesla’s NPS Score?

According to most recent estimates, Tesla has a Net Promoter Score of 97. That means that the overwhelming majority of the company’s customers are promoters, while less than 2% are passives and detractors respectively.

While Tesla’s NPS score might feel improbably high, there’s no reason to doubt it. In fact, it’s totally consistent with other studies into Tesla’s customer loyalty:

• According to a Bloomberg study, 99% of Tesla customers would recommend the Model 3 to friends or family. That’s an incredibly high rate of customer loyalty.

• Tesla has the highest owner satisfaction of all car brands, according to Consumer Reports, beating competition from automotive heavy-weights like Porsche and Volkswagen.

• A recent study from Experian also found that Tesla is the number one car brand for brand loyalty. According to the survey, 74.7% of people that disposed of a Tesla car bought a new one.

• Customer loyalty is having a big impact on growth. In the year to 2021, Tesla’s revenue grew by over 70%.

Is Tesla’s NPS Score Considered Good?

Yes, Tesla’s NPS score is considered good. In fact, it may be one of the best NPS scores of any major brand in the world.

Typically, any score above 0 is generally considered good, as it shows that you have more promoters than detractors overall. Meanwhile, Bain & Company, the organization that invented the NPS Score, says anything above 50 is great, and anything above 80 is incredible.

That means Tesla’s NPS score of 97 really is untouchable.

Of course, though, every different industry has different standards.

While NPS in healthcare expects really high results, NPS in telecoms has a much lower benchmark.

You can find all the details for your industry in the CustomerGauge annual NPS and CX Benchmark report.

How Does Tesla’s NPS Score Compare to Other Automotive Companies?

According to CustomerGauge NPS benchmarks, the automotive industry’s average NPS is 58.

From the data we have, Tesla’s competitors have the following NPS scores:

• Honda NPS – 82

• Toyota NPS – 43

• Hyundai NPS – 69

• Harley-Davidson NPS – 52

• Rolls Royce NPS – -47

In an industry typically characterized by really strong customer loyalty—with an average customer retention rate of 83%—ensuring excellent customer experience is a must.

And the data suggests that Tesla’s customer experience is really exceptional. Let’s see how Tesla achieves its results.

Tesla Brand Loyalty: What Factors are Driving Tesla’s NPS Score?

How can Tesla secure an NPS score of 97? It comes from a mix of an incredible product, transparent communications at all levels of the business, and a commitment to closing the loop on customer feedback.

An Excellent Product

To start with, Tesla’s customers are incredibly satisfied with the brand’s products—thanks to a great driving experience and perks that are unique in the industry. For example, Tesla can repair cars remotely. If vehicle software plays up, engineers can often fix software at a distance. This delivers a fast response that’s effortless for customers.

Transparency

Tesla has a reputation for honest communication. For a disruptive brand that’s continually pushing the boundaries of what a car can do, this really matters.

In one famous example, manufacturing issues pushed back the delivery date of Tesla’s Model X. Obviously, customers were getting impatient. In response, Tesla decided to be completely honest about the challenges, with Elon Musk directly responding to concerns on Twitter. Without this transparency, Tesla could have lost customer trust.

Responding to Customer Feedback

Customer feedback helps to drive Tesla’s product development—and Musk is incredibly clear about this. It’s said that Tesla makes around 20 engineering changes to its Model S every week, based on feedback on driving experiences or on data insights into car use. This allows the company to continually deliver to customers exactly what they want.

The CEO Closes the Loop

Elon Musk is known for his behavior on Twitter etc. But in terms of customer experience, he is a massive asset. In fact, he’s one of the best examples of a CEO publicly closing the loop with his customers. It makes customers feel heard.

Personalized Buying Experience

Interactions with the Tesla brand are highly personalized—at every customer touchpoint.

For example, once you place an order, you have a week to modify it before the Tesla factory begins work. Then the car will be delivered to you, wherever you are, or you can pick it up at the factory and get a free tour of the site. It’s something pretty unique in the automotive industry.

A Clear Vision and Shared Values

Tesla as a brand is not just about cars. Rather, the organization passionately promotes a vision: that electric vehicles will one day solve the planet’s energy problem. As a result, customers are not just buying a product, but they’re buying into a set of values—and a commitment to make the world a better place.

Improve Your NPS Score with CustomerGauge’s Account Experience

At CustomerGauge, we can help you reach the heights of Tesla’s NPS score. With our customer experience management software, you can monitor and improve customer sentiment at every stage of the customer journey.

That’s not all. Our Account Experience tools allow you to easily understand the impact your customer experience is having on your revenue. Request a demo to learn how.

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