You don’t need a Ph.D. in customer behavior to know that people spend more when they love your brand. However, figuring out how loyal your customers feel is often tricky. Sure, they may buy products a few times and even write flattering reviews. But are they actually attached to your brand — or is it just the most convenient option for now?
Calculating your Net Promoter Score®, or NPS®, can help you measure loyalty with cold, hard data. But what is considered a good NPS? The answer to that question is not as straightforward as you might think.
It depends on your industry, as well as how customers feel about your interactions. Someone who’s irritated they need to replace a broken laptop, for example, will probably be more critical than a tourist staying at a luxury hotel.
In this article, we’ll walk you through the process of determining whether your NPS is good or not, touching on key factors that may influence your score. We’ll also share tools you can use to calculate your NPS accurately.
What is a good NPS score?
- A “good” NPS is not a universal number — it’s a score that’s higher than your industry’s average.
- Absolute NPS benchmarks treat 0, 30, 60, and 80 as universal tiers. These numbers offer a helpful baseline, but without context, they can oversimplify the meaning of your score.
- Relative NPS is the most accurate way to judge performance. It compares your score with others based on industry, region, business size, customer life cycle, and survey method.
- In general, anything above 0 is positive. From there, 20 to 40 is considered strong in many industries, 40 to 60 is deemed great, and 60 to 80 or higher is regarded as excellent.
- Trends matter more than isolated values, so keep measuring NPS over a long period.
NPS benchmark tiers
Here’s a quick breakdown to help you understand your Net Promoter Score:
| Tier | NPS range | Meaning |
|---|---|---|
| Poor | <0 | More detractors than promoters; structural issues to address |
| Below average | 0–20 | Slightly positive; okay for some industries, weak for others |
| Good | 20–40 | Above many industry norms; solid customer satisfaction |
| Great | 40–60 | Strong loyalty signals; considered excellent in most sectors |
| Excellent | 60–80+ | Rare; world-class loyalty consistent with only the top brands |
| Exceptional | 80–100 | Very rare; usually associated with small, highly loved niche brands |
Don’t get too hung up on these general tiers, though. Remember: Context is everything.
Why benchmarks matter
Calculating your own NPS is only part of the puzzle: You also need to know how your score stacks up against other businesses in your industry.
It’s not a direct competition, per se. However, benchmarks can reveal strengths or weaknesses in your customer experience. If your NPS is 25, but the industry average is 40, that’s a red flag that you’re falling short somewhere. Maybe customers have had off-putting interactions with your sales team, or they’re miffed about a too-strict return policy (Only three days?).
Benchmarks also allow you to set realistic goals. If a good score in your industry is 20, aiming for 65 will only lead to disappointment and wasted resources.
Absolute vs relative NPS
An NPS survey always revolves around one core question:
On a scale from 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?
Jotform’s NPS Survey form templates allow you to build standardized NPS surveys instantly. Stick to the main question for a super short survey, or add others, such as “Which feature needs the most improvement?” Asking more questions can help you learn more about your customers’ experiences, but long surveys may deter all but the most loyal clients from participating. Aim somewhere in the middle for a healthy balance.
Once you calculate your NPS metric, you can look at it from two different angles: absolute NPS and relative NPS.
What is absolute NPS?
Absolute NPS compares your company’s score against four universal benchmark tiers: poor, good, great, and excellent. Use this score when you
- Want to get a general sense of your performance
- Explain NPS to stakeholders who aren’t interested in the nitty-gritty details
- Have no historical data or benchmarks yet because your company launched recently
A six-month-old tech startup, for instance, may use absolute NPS as a quick snapshot to see whether customers like its products. Just remember, this standalone score doesn’t tell the whole story.
What is relative NPS?
Relative NPS compares your score against the average for your industry, market region, or customer segment. It offers a few advantages over absolute NPS:
- Relative NPS gives you a more realistic picture of customer loyalty.
- It’s a more meaningful way to assess your performance.
Above all, this method gives you much-needed context. An NPS score of 25 may be great for a bank but poor for a cozy bed-and-breakfast. If all you see is 25, you have no idea which category you fall into.
Why is relative NPS usually more accurate?
Customers have different attitudes and expectations, depending on the industry and market. Relative NPS gives you the nuance you need to better understand your performance.
While absolute NPS is a helpful starting point, you should never evaluate your score in isolation. It’s only meaningful when compared against peers and your own historical performance. For example, if your score has increased 10 points over the last year, you know you’re on the right track.
Benchmark by industry and region
You’d never expect a local flower shop to earn the same revenue as a major fashion retailer. The same principle applies to Net Promoter Scores. Every industry has its own NPS benchmarks, so take the time to research the norms for your vertical. And don’t waste time comparing your score to businesses in totally different sectors — that won’t tell you anything useful.
Qualtrics, a leading experience management firm, shares NPS benchmarks in 22 industries. As you can see below, what’s considered good for one industry could be excellent or poor in another.
Software as a service (SaaS) and tech
Software firms have an average NPS of 21.1, compared to 16.5 for tech companies. SaaS providers tend to score higher because their subscription models let them build long-term relationships. They also push regular updates and offer ongoing customer support, which helps keep clients more satisfied.
By contrast, customers may only interact with electronics brands every few years, and the products they purchase typically have higher up-front costs. If someone has a less-than-satisfying experience while buying a pricey smartphone, they can quickly become a detractor.
Retail
With an average NPS of 33.0, retailers have the second-highest scores of all industries, surpassed only by grocery brands. The explosion of e-commerce is one possible reason for this trend. When you can get everything from a dog sweater to an engraved bowling ball delivered right to your doorstep, it’s hard to feel disgruntled.
Plus, online shoppers have practically limitless options for many products. Don’t like one specific brand? Keep shopping around until someone else wins your loyalty.
Hospitality and travel
Hotels and airlines are tied with an average NPS of 21.9. Travelers have high expectations, and a lot can go wrong on a trip. A delayed flight — or, even worse, a bedbug sighting — could turn even the most loyal client into a major detractor. On the flip side, an awesome hospitality experience could be the highlight of the trip, which is why these industries usually land near the middle of the pack.
Coming in last place, car rental companies score a dismal 15.8. This suggests the industry frequently disappoints its customers. A vacationing family who reserves a luxury SUV will almost certainly be upset if the company only has a clunky minivan waiting for them. Customers may also be less loyal because they’re constantly hunting for the lowest prices to stretch their travel budgets.
Health insurance
The average NPS for health insurance companies is 22.3. Frequent claim denials and high premiums can dramatically reduce loyalty and satisfaction. Someone who is denied coverage for a major surgery probably wouldn’t recommend their insurer to friends.
Financial services
Investment firms and banks tend to score high on NPS surveys, averaging 30.5 and 28.0, respectively. These companies often have convenient online services and staff available to assist customers one-on-one, leading to higher loyalty.
B2B services
According to a study by B2B International, business-to-business (B2B) companies earn an average NPS of 34. B2B relationships often last many years, and clients may have dedicated account managers or support teams for personalized assistance.
B2B customers also make larger purchases than regular consumers, so providers often go the extra mile to keep them satisfied. Losing a client may cost a clothing company a few hundred dollars, but a B2B company could be out millions.
Regional variations
Industry isn’t the only factor that impacts Net Promoter Scores — geographic area can also influence customer expectations and loyalty. A 2023 SurveyMonkey study shows just how drastically the average NPS can vary between regions:
- Brazil: 62
- India: 51
- United States: 30
- United Kingdom: 28
- Canada: 24
- France: 16
- Japan: −52
If a Brazilian company has an NPS of 10, it’s probably performing horribly. In Japan, though, the same score means you’ve made a great impression on the country’s famously picky customers.
What affects your NPS and why context matters
Customer loyalty and satisfaction are complex and ever-changing. If you want to improve your Net Promoter Score, you need to understand exactly what’s influencing it. Here are a few areas to consider.
Customer life cycle
Your relationship with your clients naturally changes throughout the customer life cycle — ideally, for the better. Someone who recently discovered your brand probably doesn’t have much loyalty yet, so they may give it a 3 or 4. Meanwhile, a repeat buyer who always receives excellent service will likely score you much higher.
Survey timing
Consider when you ask customers for their opinions. A post-purchase survey captures their first impressions of your products or services, while onboarding surveys could reflect excitement or annoyance. Only inherently loyal customers will fill out a renewal survey.
Product complexity
People who buy mission-critical products — such as medical equipment — may have higher expectations than customers shopping for jewelry and other commodities.
Survey channel
Email links and website surveys may reach even the most casual buyers. By contrast, people who took the time to download your app probably have more loyalty.
Sample size and response bias
A few negative or positive responses can skew a small sample size, so try to survey as many people as possible. You should also resist the urge to filter out customers who have already complained about your brand. Be as representative as possible.
How to interpret and improve your NPS
Calculating your NPS is the beginning of your journey, not the end. Follow the steps laid out in this section to better understand this metric and use it to level up your business.
Step 1: Segmenting your data
While your overall NPS gives clues about your performance, it doesn’t always make it easy to figure out your weaknesses. For a more nuanced analysis, divide your data into different categories, such as
- New vs returning customers
- Specific products
- Free vs paid plans
- Region
Suppose a software company has an NPS of 9 for paid subscribers but only a 3 for free users. Even a small gesture like adding extra features for the lower tier plan could have a huge impact on satisfaction levels.
Jotform Tables, a powerful spreadsheet database, makes it easy to segment your data and calculate the Net Promoter Score for each group. This tool will also auto-populate every time someone completes your NPS survey, so you’ll always have the most up-to-date information.
Step 2: Tracking trends
Even the most attentive businesses don’t build loyalty and trust overnight. Instead of focusing on one-time snapshots, look for trends in your data to see if you’re on a positive or negative trajectory.
Not a data whiz? No worries. A Jotform dashboard lets you compile all your survey responses in one place, then use analytics to compare changes in NPS across longer periods. You can use it to compare progress month-over-month or quarter-over-quarter.
If you want visual representations of your data, check out Jotform Report Builder. It automatically generates reports based on your NPS form responses, so you can glean business insights more easily.
Step 3: Acting on feedback
As you gather responses from your customers, you’ll probably notice areas where you can improve right away. Put these findings into action quickly with Jotform automations and workflows. These solutions allow you to hand off repetitive tasks like
- Gently reminding customers to complete your NPS survey
- Sending check-in messages or special offers to win back unhappy customers
- Sharing product launches and other valuable content with promoters
By passively nurturing your relationships, these action items will help you earn (and maintain) a higher Net Promoter Score.
Step 4: Resurveying consistently
You don’t want to pester customers with surveys — that’s a surefire way to lose all your hard-earned loyalty. However, you should check in more than once to make sure you’re still meeting their expectations. Stick to a predictable cadence, such as once a year or after each major purchase.
And resist the temptation to rewrite your survey. For the most accurate results, only edit it when the context or market changes.
Get context, get connected
The Net Promoter Score has revolutionized the way businesses understand their customers. Instead of assuming everyone loves your brand, you can see exactly how customers feel about it.
You don’t need to splurge on expensive software or hire a data analyst to calculate your NPS. Get started in minutes with Jotform’s ready-to-use Net Promoter Score Form template. You can use it as is or customize it based on your business’s needs using our simple drag-and-drop editor.
Once the data starts flowing in, make sense of it all with Jotform Tables and create an action plan. Before you know it, you’ll be well on your way to building more satisfying, lasting customer relationships.
FAQs about NPS
Industries with poor customer service or frustrating processes often earn lower Net Promoter Scores. If your flights frequently get delayed, for instance, you’ll probably feel less loyal to the airline — even if those late flights were caused by thunderstorms and not anything the company did.
Absolute NPS is a standalone score, while relative NPS compares performance against industry and regional benchmarks.
For small businesses, a sample size of 100 responses is typically enough to calculate NPS. Larger companies may survey thousands of customers for accuracy.
Measure NPS at least once a quarter to catch issues early.
No, NPS only tells you how customers feel at one moment in time. Combine it with other metrics — such as number of repeat buyers and social media engagement — to see the full picture.
This article is for CX and support leaders, product marketers, founders, and analytics teams in SaaS, e-commerce, B2B services, and retail who need to know whether their NPS is “good” in context.
Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter ScoreSM and Net Promoter SystemSM are service marks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.
Photo by Andrea Piacquadio
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