Why Is NPS So Important?
By now you’re aware of what your NPS® is and how it’s calculated (if not, check out our previous post introducing NPS® here ). But why does it matter so much? How can we get so much information from one simple question ?
By looking at your customer experience feedback in terms of how likely a customer is to refer your business to a friend, you’re able to discern how your customer service is received in a real and applicable way. Is there a gap between the brand promise you make and the brand promise you deliver?
Is the experience you’re providing customers gaining you promoters or detractors?
And how do the promoters and detractors interact to either support or hinder your business?
Your NPS® measures your customer feedback and recodes it into a percentage that is easily understood and compared. Having a higher NPS® means that you have more promoters than you do detractors – or, in layman’s terms, it means that more of your customers are willing to refer your brand. And while you don’t want a low NPS®, getting a low score can still be useful because you’re able to see that you need to work on in order to improve your customer experience.
Temkin’s 2015 Net Promoter Score Benchmark Study outlines NPS® across multiple industries and helps provide general averages for benchmark purposes. As shown in the following image, the lowest scores can be found in the TV service provider industry, the highest scores can be found with insurance carriers, and there is a very small gap between average NPS ® and high NPS ® of wireless carriers.
 Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
 Source: Temkin Group Q3 2015 Consumer Benchmark Survey: Research Date: October 13th, 2015. Available at https://experiencematters.wordpress.com/2015/10/13/report-net-promoter-score-benchmark-study-2015/