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How does NPS® benchmarking keep your business competitive?

Posted by Perceptive Team - 29 May, 2017

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Your Net Promoter Score (NPS) is much more than just a customer loyalty metric. It’s a tool that gives your business the ability to know how you rank against the competition—and more importantly, how to get to the top of the leaderboards.

Related content: What is a good Net Promoter Score?

 

Get beyond the average

Your NPS score tells you how your customers view your business, products and/or services, and why. This identifies particular pain points, as well as opportunities that your company isn’t taking advantage of yet.


For some, that might be enough—but we know you don’t just want to do ‘enough’. You want to become a leader in your industry. A good NPS score isn’t just about how well your business is doing in general, but also about how well you are doing in comparison to your peers.


That’s where the Perceptive Group’s competitive NPS benchmarking comes in.

 

How does NPS benchmarking work?

Because “What is a good NPS score?” is one of the most common questions we get, the Perceptive Group’s research arm (Perceptive Research), has collated a wealth of information about the overall NPS scores of a multitude of industries.


With this data, we can provide you with an average benchmark for your industry. Every industry average is different, each sector creating new Promoters and Detractors at different rates. You wouldn’t compare an electronics retailer to an agribusiness in terms of yearly turnover—so why do it for customer perception?

 

Every industry average is different, each sector creating new Promoters and Detractors at different rates.

If your company is beyond your industry average, you now have data-driven confirmation that your current strategies are working. You can prioritise similar projects and continue to grow with confidence.


If you find your business is struggling to hit the average, however, then the benchmark tells you it is time to take another look at your strategies and customer pain points.


NPS benchmarking gives you the opportunity to build upon your strengths and work around your weaknesses to deliver better outcomes for your customers. Ultimately, that gives your business the direction it needs to remain competitive.

 

What’s the NPS for high growth rate companies?

Bain & Co research has shown that companies with the most efficient growth rate have Net Promoter Scores of between 50 and 80. This will vary from industry to industry, but this is a good goal to aim for on a wide scale.

However, most companies are falling well short of this range, the average only sitting on an NPS between 5 and 10. In other words, their Promoters barely outnumber their Detractors. These businesses are delighting almost as often as they are disappointing.

Sometimes entire industries have negative Net Promoter Scores. Considering how important the customer/client experience is for commercial success, this is a clear indicator of why so many businesses struggle to deliver profitable, sustainable growth.

Even if they aggressively chase new business, they are losing all they gain at the other end of the scale. Many don’t even know that their NPS scores are in the negative, or are lower than their industry average. Once again, benchmarking could have provided the information needed to adjust their failing direction.

 

"We find that when businesses apply the learnings from an NPS programme – that is what truly makes the difference in the score."

 

Sammie Parkinson, CX Team Leader at Perceptive, explains further:

“Our banking and real estate clients are bucking both their industry averages and the overall averages,” she says.

“We find that when businesses apply the learnings from an NPS programme – that is what truly makes the difference in the score. Not just a high NPS score, but one that is defendable and is creditable too.”

NPS is far more than just customer loyalty metrics. It provides direction, strategy and an indicator of when things are going wrong. It’s a data-driven solution to the most common issues for Australian and New Zealand businesses.

Isn’t it about time you measured up your enterprise against the competition?

 


 

Get the latest NPS benchmarks here, for both New Zealand and Australia.

Download NPS Benchmarks

Topics: Brand Health


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