- NPS Benchmarking
- The practice of comparing your Net Promoter Score against industry standards, competitors, or historical performance to understand relative performance and set improvement goals.
NPS Benchmarking is the practice of comparing your Net Promoter Score against industry standards, competitors, or historical performance to understand your relative position, identify improvement opportunities, and set realistic goals.
**Definition**: NPS Benchmarking involves comparing your organization's NPS score with relevant benchmarks—such as industry averages, competitor scores, or historical performance—to assess performance and guide improvement efforts.
Types of NPS Benchmarks
Industry Benchmarks: - Average NPS for your industry - Top performers in your industry - Industry-specific standards - Sector-wide comparisons
Competitive Benchmarks: - Direct competitor NPS scores - Market leader NPS - Competitive positioning - Market share leaders
Internal Benchmarks: - Historical NPS performance - Previous period comparisons - Department or product comparisons - Geographic or segment comparisons
Best-in-Class Benchmarks: - Top-performing companies overall - Industry leaders - Excellence standards - World-class performance levels
Benefits of NPS Benchmarking
Performance Assessment: Understand how your NPS compares to relevant standards and identify performance gaps.
Goal Setting: Set realistic, achievable NPS improvement goals based on benchmarks.
Competitive Intelligence: Understand your competitive position and identify opportunities to differentiate.
Strategic Planning: Inform strategic decisions based on benchmark comparisons.
Stakeholder Communication: Provide context for NPS scores to help stakeholders understand performance.
How to Benchmark NPS
Identify Relevant Benchmarks: - Industry-specific benchmarks - Competitor data (when available) - Historical performance - Best-in-class standards
Collect Benchmark Data: - Industry reports and studies - Public NPS data - Third-party research - Internal historical data
Compare and Analyze: - Compare your NPS to benchmarks - Identify gaps and opportunities - Understand relative performance - Set improvement targets
Track Progress: - Monitor performance vs. benchmarks over time - Measure improvement progress - Adjust strategies based on results
Common NPS Benchmarks by Industry
Technology: - Software: 30-50 - SaaS: 25-45 - Hardware: 20-40
Retail: - E-commerce: 30-50 - Brick-and-mortar: 15-35 - Specialty retail: 20-40
Financial Services: - Banking: 10-30 - Insurance: 5-25 - Fintech: 20-40
Healthcare: - Hospitals: 10-30 - Health insurance: 5-25 - Telehealth: 20-40
Best Practices for NPS Benchmarking
Use Multiple Benchmarks: Compare against industry, competitors, and historical performance for comprehensive understanding.
Consider Context: Account for factors like industry maturity, customer base, and business model when interpreting benchmarks.
Set Realistic Goals: Set improvement goals that are challenging but achievable based on benchmarks.
Track Trends: Monitor how your position relative to benchmarks changes over time.
Focus on Improvement: Use benchmarks to identify improvement opportunities rather than just comparing scores.
By leveraging NPS Benchmarking effectively, organizations can understand their competitive position, set realistic improvement goals, and drive customer experience improvements that enhance loyalty and growth.