Lexi Webster
Net Promoter Scores (NPS) are a widely recognised metric for customer loyalty and satisfaction, used by organisations to gauge the health of their brand or product. Respondents are asked how likely they are to recommend a brand to a friend or colleague, with answer options ranging from 'not likely at all' to 'extremely likely'. NPS scores can be impacted by where and how the survey is delivered, and they differ vastly between industries. In Australia, the average NPS is 30, while the average for retail is 31. A score of 50 or above is generally considered excellent, while a score of 71 or above indicates exceptional service.
| Characteristics | Values |
|---|---|
| NPS score range for good, great, and excellent service | 0-50 (good), 51-70 (great), above 71 (excellent) |
| NPS score calculation | Subtract the percentage of promoters from the percentage of detractors |
| NPS score range | +100 |
| NPS score for Passives | 7-8 |
| NPS score for Promoters | 9-10 |
| NPS score for Detractors | 0-6 |
| NPS score for Australia in 2023 | 30 |
| Average NPS score for Internet, Software, and Services companies in Australia | 9 |
| Average NPS score for retail in Australia | 31 |
| NPS score indicating customer loyalty and satisfaction | Above 50 |
| NPS score indicating exceptional service | Above 70 |
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What You'll Learn
A good NPS score in Australia is generally considered to be 30 or above
A Net Promoter Score (NPS) is a widely recognised metric for customer loyalty and satisfaction. It is used by organisations to gauge the health of their brand or product. NPS scores can be used to compare performance against competitors and industry standards. However, it is important to note that direct comparisons between countries can be challenging due to cultural differences. For example, some cultures are less likely to use the top of any scale.
In Australia, a good NPS score is generally considered to be 30 or above. This is based on the average NPS score for Australian companies, which is typically around 31. An NPS score of 50 or above is considered excellent, while a score between 0 and 50 is generally viewed as good. Scores between 51 and 70 are considered great, and anything above 71 indicates excellent service.
The retail industry in Australia has an average NPS score of 31, and companies with scores above this benchmark are considered to be performing well. However, it's important to note that NPS scores can vary significantly across industries. For example, the average NPS score for internet, software, and services companies is around 9, while SaaS businesses typically aim for an NPS of 50 or higher.
While it is useful to compare NPS scores against competitors and industry standards, it is also essential to focus on improving your score over time. A good NPS is one that is better than your previous score, indicating progress and strengthening your business. NPS surveys can be conducted annually to track this progress, and the method of delivery can impact the results, with in-app surveys tending to have higher response rates.
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An NPS score of 50 or more is excellent
An NPS score of 50 or more is considered excellent. The Net Promoter Score (NPS) is a widely recognised customer loyalty and satisfaction metric used by organisations to track the health of their brand or product. The score is calculated by subtracting the percentage of detractors from the percentage of promoters, giving a range of -100 to +100. An NPS of 50 means that at least 50% of respondents are promoters, while fewer than 50% are detractors.
A good NPS score depends on the industry. For example, in the retail POS industry in Australia, a score above 31 is considered good, while an NPS of 50 or more is excellent. The average NPS score for Internet, Software, and Services companies is typically around 9, making a score of 50 exceptional.
NPS scores can differ significantly across industries and countries. For instance, Brazil and India have the highest NPS scores globally, while Japan has the lowest. Australia, the United States, and the United Kingdom have relatively similar scores of 30, 30, and 28, respectively.
It is important to note that the NPS works best as a metric to track customer loyalty and satisfaction over time. Therefore, a good NPS is one that is better than the previous score, indicating improvement in customer satisfaction.
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NPS scores vary across industries, with retail's average being 31
Net Promoter Scores (NPS) are a widely recognised metric used to measure customer satisfaction and loyalty. Customers are asked how likely they are to recommend a brand to a friend or colleague, with scores ranging from 0 to 10. NPS can range from -100 to +100, with scores of 50 and above considered excellent.
NPS scores vary significantly across industries and countries. In Australia, the average NPS is 30, with scores ranging from 28 to 60 depending on the industry. For example, the average NPS for Internet, Software, and Services companies is typically around 9, while the benchmark for the retail industry is around 31. This variation is due to differences in customer expectations and experiences in different industries.
In the retail industry, an NPS of 31 is considered good, with scores above this indicating strong customer satisfaction and loyalty. Retailers with high NPS scores, such as Jack Daniel's (45), Walmart (40), and L'oreal (40), are seen as top performers in customer satisfaction. These companies consistently deliver great customer experiences and have loyal customers.
While industry benchmarks are essential for context, a good NPS is one that is better than your previous score. NPS is a tool to fuel continuous improvement, and the focus should be on raising your score over time. By tracking annual progress and comparing it to competitors, businesses can identify areas for improvement and enhance their customer satisfaction.
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The Net Promoter Score is a measure of customer satisfaction
The Net Promoter Score (NPS) is a measure of customer satisfaction and loyalty. It is a simple yet powerful tool used by organisations to gauge how their customers perceive their brand or product. The NPS is calculated based on responses to the question: "How likely is it that you would recommend this brand to a friend or colleague?" Respondents are categorised into three groups: Detractors (scoring 0-6), Passives (7-8), and Promoters (9-10). The percentage of detractors is then subtracted from the percentage of promoters to obtain the NPS, which can range from -100 to 100.
In Australia, the average NPS varies across industries, with retail POS software companies typically scoring around 9, and a score above 31 considered good. However, as customer expectations rise over time, net promoter scores have been generally lowering. Thus, a good NPS is often relative and industry-specific. For example, while banking and healthcare industries struggle to achieve scores above 30, SaaS businesses aim for an NPS of +50 or more.
A good NPS can also be relative to a company's previous performance. A score that is better than the last NPS indicates improvement and strengthening customer satisfaction. This relative comparison allows companies to focus on raising their NPS rather than solely competing with industry benchmarks. Additionally, cultural contexts can influence NPS results, with some cultures being less likely to use the top of any scale.
Ultimately, a "good" NPS is one that reflects strong customer loyalty and satisfaction. An NPS above 50 is generally considered excellent, while scores between 51 and 70 indicate great performance, and anything above 71 signifies exceptional service.
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NPS scores are influenced by quality and ease of use
The Net Promoter Score (NPS) is a widely recognised customer loyalty and satisfaction metric used to track the health of a brand or product. It is calculated by asking customers a single question: "How likely is it that you would recommend [product/company/service] to a friend or colleague?" with responses ranging from "0—not likely at all" to "10—extremely likely". NPS scores range from -100 to +100, with scores closer to -100 indicating a higher number of detractors and scores closer to 100 indicating more promoters.
NPS scores are influenced by a variety of factors, and quality and ease of use are leading drivers of NPS across most countries. Quality is a top driver in the US, Canada, Brazil, and the Netherlands, and ranks among the top four in the UK, France, Australia, Japan, and India. Ease of use is also a significant factor, ranking first in the UK, France, and India, and second in the US, Brazil, and the Netherlands.
In Australia, a good NPS score is considered to be above 30, with scores above 50 generally considered excellent. The average NPS score varies across industries, with the retail POS industry having an average score of 9, while the benchmark for the Australian retail POS market is around 31.
It is important to note that NPS scores can be influenced by various factors, such as survey format, response rates, and customer expectations. Additionally, cultural differences can impact NPS results, as some cultures are less likely to use the top of any scale. Therefore, it is recommended to focus on improving your NPS score over time and comparing it to your previous scores rather than solely focusing on achieving a specific number.
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Frequently asked questions
A good NPS score in Australia is generally considered to be between 30 and 50. However, this varies across industries. For example, the average NPS score for retail in Australia is 31, while the average for Internet, Software, and Services companies is 9.
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A score of 0 means that everyone is either passive or that you have equal numbers of promoters and detractors. An NPS of 50 means that at least 50% of your respondents are promoters, and fewer than 50% are detractors.
A good NPS score is one that is better than your previous score. It is a tool to help you track your customer loyalty and satisfaction, so you should focus on improving your score over time.
The leading drivers of NPS are quality and ease of use. Quality is the top driver in the US, Canada, Brazil, and the Netherlands, while ease of use is the top driver in the UK, France, and India.
