What is a Good NPS Score by Industry [2024 benchmarks]

You can see that there is a wide range in Net Promoter Score, and there are several factors to consider in order to determine what is a good NPS score. In the coming sections, we’ll examine the absolute values of a high Net Promoter Score across industries

Definition of Net Promoter Score

Before jumping into what is a good NPS score, let’s find out about the definition of a NPS. A straightforward yet useful indicator called Net Promoter Score (NPS) asks one crucial question: “How likely are you to suggest our company/product/service to a friend or colleague?”. Customers are categorized as Promoters, Passives, and Detractors based on their responses; the difference between the percentage of Promoters and Detractors is known as the Net Promoter Score (NPS).

• Promoters (9–10): Devoted fans who will probably tell others about your company and draw in new clients.

• Passives (7-8): Despite being happy, these clients are not loyal to your business and could quickly move to a rival if they come across a better deal.

• Detractors (0–6): Disgruntled clients who could harm the growth and reputation of your company through unfavorable word-of-mouth.

Since its initial introduction in 2003, the NPS concept has grown to be a crucial point of reference for companies looking to enhance the customer experience. This is the reason why:

• Simplicity: NPS is simple to comprehend, apply, and use. Its simplicity makes it a useful metric for businesses of all sizes and sectors.

• Actionability: Organizations can leverage Net Promoter Score (NPS) to identify areas for improvement, effectively target particular customer categories, and convert at-risk consumers into brand advocates. Additionally, the metric is used to assess the general state of customer interactions.

• Predictive value: A high NPS indicates a possibility for higher customer retention and more revenue for the company, indicating future growth. It is linked to customer loyalty and positive word-of-mouth.

• Benchmarking: NPS provides a way to assess performance in relation to rivals and industry norms, allowing for the identification of long-term trends and the support of well-informed decision-making.

Read more: The Power of NPS Surveys: Unlocking Customer Loyalty

2023 NPS benchmarks 

What is a good NPS score? We have discussed before how crucial it is to benchmark NPS in order to maximize its potential. Several sources were consulted in order to identify the concept and provide illustrative instances. 

We calculated an average value for each of the industries that fit the rule by examining the NPS scores of the relevant consumers.

Surprisingly, every industry examined exceeded the zero criterion based on the combined data from all of our customers. We could see an average score ranging from 9 to 74 overall, as none of the assessed companies entered the negative NPS category.

We choose to divide our data into B2B and B2C organizations in order to create a more visually appealing display. But let’s look at the numbers first before making any judgments:

With an average score of 74, the insurance sector leads the field as a result. Financial Services, with an NPS score of 71, was ranked in the top three. With an NPS score in the upper 60s, the consulting industry is still growing and disturbing the upward trend it had been experiencing for the previous four years, although no longer being at the top of the leaderboard.

2022 saw a significant improvement in the standings of Ecommerce, Retail, and Technology & Services as compared to 2021. These businesses were able to successfully adjust to the new requirements imposed by the high-stakes reality. With NPS scores of 64 and 61, respectively, only Technology & Services and Retail improved or maintained their positions in 2023. With an NPS score of 50, e-commerce had the second-lowest value in the business during the previous five years.

With an NPS of 60, the construction sector is on the rise and is recovering from a minor decline in the previous year.

These sectors demonstrate that if a customer-centric strategy is used, an average NPS score of more than 50 may be attained, along with the Digital Marketing Agencies shown on our chart. Because all it takes for a prospective promoter to become a detractor is one bad encounter, organizations have learnt to be mindful of every interaction with customers and move swiftly to welcome change. What is a good NPS score for this sector? The figures are self-explanatory.

Moving on, we see that B2B software and SaaS companies have a consistent increase with an NPS score of 41, while Healthcare and Logistics & Transportation companies have a persuasive average NPS in the low 40s.

While Internet Software & Services showed a positive value of 9, at the lower end of the scale, the Cloud & Hosting business appears to be holding onto its respectable score of 39.

By highlighting the following points, we can draw a line beneath the numbers:

• What is a good NPS score for each industry? The typical Net Promoter Scores for B2B and B2C industries, respectively, vary from 39 to 65 and 9 to 74, according to the combined data. It is evident that the difference between the top and lowest scores for B2C markets is larger than it is for B2B markets.

• The highest NPS benchmark value showed a 3 point gain from the prior year, while the lowest score showed a more notable 5 point improvement.

• While the benchmark’s industries have high average NPS scores, most have seen a drop in business during the pandemic years. The most severely impacted industries are logistics and transportation (which went from 29 to 3), e-commerce (which went from 62 to 45), and insurance (which went from 70 to 57). These industries managed to increase their bottom line and come strong with stronger offers, more customer-centric procedures, and improved customer experiences – clearly evident in their 2022 NPS scores – even though the pandemic changed the game and imposed a new reality. Ten of the fourteen industries on the NPS benchmarks had an increase in 2023, or they maintained their position, indicating a sustained increasing trend.

• The sectors that showed the biggest increase were financial services and construction, which went from 56 to 71 and 45 to 60 points, respectively, and cloud and hosting companies, which gained 14 points, and internet and software services, which gained 5 points. Despite a 40-point gain the year before, this year’s growth is not as notable, but all of these industries have rebounded from a less successful 2022.

• While the majority of industries have seen a rise in their NPS scores, returning to pre-pandemic levels or even exceeding them, a few sectors have seen a notable decrease. These include consulting, e-commerce, and digital marketing agencies.

• With Cloud & Hosting, Technology and Services, B2B Software, Digital Marketing Agencies, and Ecommerce achieving the mid-values in our NPS standard, the pandemic has highlighted an increased digital presence. 75% of decision-makers said that COVID sped up the implementation of digital technologies, according to Zendesk. Expectations are high, and it seems that not even the most adaptable industries have escaped scrutiny.

• The pandemic and its aftermath have had a significant impact on several industries, including travel and tourism, restaurants, and hospitality. As a result, these businesses have declined in size and are no longer regularly included in the NPS benchmark.At the same time, given the changed conditions, we see industries like food delivery and takeout or staffing and recruitment receiving more attention. The average NPS score for the majority of industries, particularly those in e-commerce and tourism, increased as anticipated as soon as the majority of countries started their vaccination campaigns.

Read more: Choosing the Right NPS Survey Tool for Your Business

What is a Good NPS Score?

What is a good NPS score? A Net Promoter Score of less than zero often indicates that your company has a lot of problems to solve.

Although there is still opportunity for improvement, a score in the range of 0 to 30 is a decent place to be. If your NPS is greater than 30, it means your business is performing well and that there are many more satisfied customers than dissatisfied ones.

An NPS above 70 indicates that your clients are highly satisfied and that your business is receiving a lot of good word-of-mouth through their recommendations. Your organization is more likely to generate more money from client referrals that convert into new leads when your NPS is greater.

Keep your score above zero as best you can. Finding yourself below zero could be depressing, even though your NPS of -10 might be higher than others in your niche. It should undoubtedly raise concerns about the quality of the customer experience you are providing.

In conclusion, companies who are dedicated to creating long-lasting customer relationships will find it invaluable to understand what is a good NPS score. Organizations can enhance their customer-centric culture, address pain issues, and develop their plans by utilizing the data obtained from a high net promoter score. A high NPS score is evidence of your brand’s ability to connect with and keep a devoted client base, so keep that in mind as you traverse the world of customer happiness.