One of the most frequently asked questions is what is a good and bad Net Promoter Score. It is important to emphasize that there isn’t a certain number to look up to, because it varies from business to business and industry to industry.
Based on the global NPS standards however, any score above 0 would be considered "good", with 50 and above classified as excellent, and 70 or higher as world class.
In other words, any score above 0 will be considered a good score. This means companies have more promoters, i.e. customers willing recommend to others and thus bring in more potential buyers, than detractors (unhappy customers).
A good practice is to use competitor’s NPS score as a benchmark and see how companies stack up. However, what is even more important is to take the company’ industry into consideration as well.
Here’s a little trick companies are rarely aware of that can help them understand whether their NPS is good or not:
Is it growing? It is important to highlight the fact that too many companies treat NPS is a “vanity metric”—focusing on the number, rather than reflecting on the story it tells about the health of the customer relationship. The Net Promoter Score by itself is largely meaningless, unless you work on improving it. Assuming you survey customers every 6 months, then a good NPS is the one that is higher than the score you received during your last survey campaign.
“It’s not the score that matters; it’s what you do with it to make promoters that really counts.” - Fred Reichheld, Bain & Company
As such, the power of Net Promoter System is not only on measuring customer loyalty. Instead, the beauty of Net Promoter System is the ability to quickly act on customer insights and grow revenue through referrals and upsells.