Net Promoter Score (NPS) score in product management is a crucial element that functions as a growth indicator. When creating new products, this metric which measures customer loyalty is taken into consideration. In, this article we will discuss whether Net Promoter Score (NPS) is a good NPS Score or a bad NPS Score. Further, we will check what are the things we can measure from Net Promoter Score (NPS).
A NPS score above 0 is considered good, but above 20 is excellent and above 50 is remarkable, according to Bain & Company, the company that developed the NPS metric. The top percentile is anywhere above 80.
Good Net Promoter Score (NPS)
Which Score is Considered a Good NPS Score?
A good Net Promoter Score (NPS) depends on the industry and the company’s specific goals. However, in general, an NPS score of 70 or above is considered to be excellent, a score of 50 to 69 is considered to be good, a score of 30 to 49 is considered to be neutral, and a score of 0 to 29 is considered to be poor.
- NPS > 0: Generally considered a good score, with more promoters than detractors.
- NPS > 50: Indicates a high level of customer loyalty and satisfaction.
- NPS < 0: Suggests that there are more detractors than promoters, indicating potential areas for improvement.
Which Score is considered a Bad NPS Score?
Any score less than zero indicates that a company has more detractors than promoters. This is where industry NPS benchmarks, such as the ones mentioned above, come in handy: while an NPS score of -3 may appear bad in isolation, it’s difficult to interpret without comparable scores from key industry players if the industry average was -10, the score would suddenly look less bad.
Even if the bar is set low, a negative NPS indicates that a company needs to work hard to improve the situation, reduce the number of unhappy customers, and generate more promoters.
What can you measure with NPS Score?
Net Promoter Scores can be used by organizations that provide a product or service, such as call centers, internet service providers, department stores, or healthcare providers.
The following tasks are made easier by the metric:
- Evaluate the loyalty and retention of your customers.
- A specific impact held by customers.
- A particular customer loss of talent.
- Enhance the company, item, or service.
Companies having a Good NPS Score:
Here are a few examples of the companies that having a good NPS scores:
Companies having a Good NPS Score
- Apple: 87
- Amazon: 77
- Netflix: 69
- Tesla: 76
- Google: 68
These companies have consistently high NPS scores because they focus on providing excellent customer service, developing innovative products and services, and building strong relationships with their customers.