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How to use Net Promoter Score Benchmarks to assess your business health

Posted by Nikky Lee - 26 February, 2018


Net Promoter Score (NPS) is a supremely useful tool—in more ways than one. Not only can it tell you the likelihood of gaining repeat business, it can also serve to gauge the overall health of your business.

What NPS reveals about your business health

The key feature that gives NPS the edge over other brand health measures is its ability to measure the likelihood of repeat business. More business means more revenue, so by extension, the quality of your NPS score can also indicate:

  • Future business growth.
  • Future cash-flow.
  • Overall customer satisfaction.
  • Brand health (i.e. what customers think of your brand).

In Australia and New Zealand, an NPS of +30 is considered up to standard. However, this number may vary depending on your industry. In New Zealand, for example, the NPS benchmark for Physiotherapists is 39, while for Debt Collectors it’s -48. Benchmarks can also vary by region. In Australia, for example, the benchmark for Physiotherapists is 7.

Where possible, it’s better to benchmark your NPS against your industry, rather than against the national or regional average across all industries.

You can find the appropriate NPS benchmarks here (for Australia) and here (for New Zealand).

Read more: What is a good NPS score?



What below average scores reveal

If your NPS is below your industry average, chances are your business is not performing as well as it should be. Moreover, it’s also at risk of losing customers to your competitors. Reasons why can vary, but a few common ones are:

  • Under-resourced teams.
  • Disengaged staff.
  • Long wait/delivery times.
  • Inadequate customer support.
  • Poor product or service quality.



How to address a below average NPS score

The good news is that if you’ve included a follow-up question to your initial NPS question, you’ll gain valuable feedback from customers to help you identify the reasons behind the score they gave. From there you can work to address them, and improve your score.

A few ways to go about this are to:

  • Check your NPS breakdown: Do you have a lot of detractors but very few passives? Check for any major problems your detractors mention, plus any suggestions for improvement. Do you have more passives than detractors? You may have an opportunity to convert them into promoters. Ask yourself:
    • Why is there an inconsistency in service for the passives, compared to the promoters?
    • What common themes are in each category—how do they differ from passives to promoters?
  • Look for trends in your NPS: Has there been a particular point of time where you’ve received a significant number of negative comments or lost a significant number of promoters? Can this be linked to a change within the business, such as the introduction of a new product feature or point of sale system.
  • Check your Most At Risk Customers (MARCs): These are the detractors who gave you the lowest scores (1-4 on the NPS scale). Has their number increased significantly lately? Have you reached out to them to resolve their issues? Is there a backlog of unresolved issues still waiting to be addressed? Have your staff been active in resolving your MARCs? If not, why not?
  • Look at your segments: Segments can be based on region, gender, age range, transaction type, etc. Is there a specific segment that has a particularly low NPS score?

If you’re already a Customer Monitor user, you can access these insights straight from the dashboard. To learn how click here.



What above average scores reveal

If you’re NPS is above your industry’s benchmark, great! But your work is not done. Your competitors won’t rest on their laurels, so neither should you.

Here are four ways to make sure you continue to get the most out of your NPS data:

  1. Identify any major NPS red flags in your customer feedback.
  2. Develop key NPS action points to address any red flags.
  3. Investigate the trends in your NPS data to find new patterns.
  4. Get staff onboard and engaged with your NPS.



These are just a few of the possible outcomes and options for assessing your business health. To learn how you could harness NPS to its fullest potential, request a free demo of Customer Monitor.


Get in touch now! 

Topics: Brand Health

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