Net promoter score (NPS) is one of the most widely used metrics for measuring customer loyalty and satisfaction. Businesses across various industries rely on NPS to gauge how likely their customers are to recommend their products or services. However, what qualifies as a "good" NPS score can vary significantly by industry. In this blog, we’ll break down NPS benchmarks across industries, explain how to interpret your score, and explore strategies to improve it.
What is Net promoter score (NPS)?
NPS is a simple yet powerful customer experience (CX) metric that measures how likely customers are to recommend a company to others. It is calculated by asking one key question:
"On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?"
Based on responses, customers are classified into three groups:
- Promoters (9-10): loyal customers who enthusiastically recommend your brand.
- Passives (7-8): neutral customers who are satisfied but not enthusiastic.
- Detractors (0-6): unhappy customers who may damage your reputation through negative word-of-mouth.
NPS is calculated using the formula:
Nps=%promoters−%detractors
This means NPS scores range from -100 to +100.
What is a good NPS score?
While any positive NPS is generally considered good, the true benchmark depends on the industry. Here’s a general classification of NPS scores:
- Above 50: excellent – indicates strong customer loyalty.
- 30-50: good – shows a healthy level of customer satisfaction.
- 0-30: average – competitive but leaves room for improvement.
- Below 0: poor – signals significant customer dissatisfaction.
Now, let’s dive into industry-specific NPS benchmarks.
NPS benchmarks by industry (2024 update)
NPS varies widely based on customer expectations, competition, and service standards. Here are the average NPS scores by industry:
1. Saas & software
- Key takeaway: customers in saas value ease of use, customer support, and product innovation.
2. E-commerce & retail
- Key takeaway: fast delivery, seamless shopping experiences, and excellent customer service drive high NPS in retail.
3. Financial services (banking, insurance, fintech)
- Key takeaway: trust and transparency are critical. Banks and fintech companies with personalized services tend to score higher.
4. Healthcare
- Key takeaway: patient experience and seamless insurance claims significantly impact NPS.
5. Telecommunications (internet, mobile, TV services)
- Key takeaway: high competition and service reliability play a crucial role in customer loyalty.
6. Hospitality & travel (hotels, airlines, car rentals)
- Key takeaway: exceptional service, personalized experiences, and hassle-free bookings improve NPS.
7. Automotive
- Key takeaway: high satisfaction in after-sales service and reliability leads to strong brand loyalty.
8. B2B services & consulting
- Key takeaway: client relationships, value-driven insights, and strategic partnerships boost NPS.
9. Media & entertainment
- Key takeaway: exclusive content, seamless streaming, and user experience drive loyalty
10. Education & online learning - Key takeaway: engaging content, accessibility, and career outcomes influence NPS.
How to improve your NPS score
If your NPS is below industry standards, here are some actionable strategies to improve it: Enhance customer support
- Provide faster response times.
- Offer omnichannel support (phone, chat, email, social media).
- Train staff to handle issues with empathy.
Improve product & service quality - Regularly collect customer feedback.
- Invest in innovation and usability improvements.
- Address recurring pain points.
Personalize customer experiences - Use ai-powered insights to understand customer needs.
- Offer tailored recommendations and proactive solutions.
Reduce friction in customer journeys - Simplify processes like checkout, onboarding, and returns.
- Ensure a seamless omnichannel experience.
Close the loop with detractors - Reach out to dissatisfied customers to resolve issues.
- Show them that their feedback leads to improvements.
Final thoughts A "good" NPS score is relative to your industry, but a high NPS always signals strong customer loyalty. By tracking your NPS over time, benchmarking against industry standards, and proactively improving customer experiences, you can build a loyal customer base that fuels growth. Want to enhance your NPS with AI-powered customer insights? XEBO.ai helps businesses understand customer sentiment, improve engagement, and drive loyalty with advanced AI-driven analytics. Schedule a free demo today to transform your customer experience! .
