What is an average Net Promoter Score (NPS)?
The Net Promoter Score, or NPS, is a widely used metric in customer satisfaction and loyalty analysis. It is a single number that provides a clear, unbiased measure of a company’s customer relationships. At its core, NPS measures customer loyalty by asking one simple question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Based on their response, customers are categorized into three groups: Promoters, Passives, and Detractors.
Promoters are customers who give a score of 9 or 10 and are highly engaged and loyal to the company. They are the most valuable segment, as they are likely to remain customers for a long time, refer others to the company, and contribute to positive word-of-mouth. Detractors are customers who give a score of 0 to 6 and are dissatisfied with the company. They are at risk of switching to competitors and spreading negative word-of-mouth. Passives fall in between, scoring 7 or 8, and are neutral but could be swayed by competitors.
The average NPS is the percentage of Promoters minus the percentage of Detractors. It provides a snapshot of a company’s customer satisfaction and loyalty levels. A higher NPS indicates better customer relationships and is generally considered a positive sign for a company’s future success. However, the average NPS can vary widely across industries and companies.
In this article, we will explore what is considered an average NPS and discuss the factors that can influence this score. We will also delve into how companies can improve their NPS and, consequently, their customer satisfaction and loyalty.
