# Calculating Net Promoter Score Benchmarks

Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

The Net Promoter Score is a good indicator of customer satisfaction and loyalty. In this lesson, you'll learn more about the Net Promoter Score and how to calculate it for your business.

## Stars and Stickers

Remember when you were in grade school, sitting at your desk waiting for the teacher to hand back your graded homework assignment? You were always excited to see a passing score, complemented by a star or sticker for exemplary work.

There are similar 'gold star' type systems for customer service in business, measurements that tell you how well you're performing and whether your customers are pleased or not. The Net Promoter Score is one of those measurements.

## What is a Net Promoter Score?

A Net Promoter Score is an actual number that measures how likely your customers are to recommend your business to their friends, family, and acquaintances. The number is taken from a percentage, but generally expressed just as a number. Industry Net Promoter Score benchmarks, or points of reference by which something can be measured, have been calculated across various industries. Some of those averages look like these:

Healthcare: 67

B2B Service Providers: 60.5

Technology: 60

Education: 59.7

Insurance: 42.6

Consumer brands: 42.6

Travel and hospitality: 38.9

Telecom: 19.7

Some of the most popular e-commerce, grocery stores, warehouse stores, and technology companies boast Net Promoter Scores between 71 and 76 percent.

The higher your score, the more likely you are satisfying customers who will recommend you to friends and family. The lower the score, the lower the level of customer satisfaction with your brand. The best possible score that can be received is 100 percent, while the worst is a negative 100 percent. Yes, you can have a negative Net Promoter Score!

While the scoring system does measure customer satisfaction and loyalty, it goes beyond that. It tells you whether a customer likes your business enough to participate in word-of-mouth marketing. This is when customers share information about your brand with other people. Maintaining and improving your Net Promoter Score has been shown in research from the Harvard Business Review and others to generate higher revenue for a business.

### Calculating Scores and Benchmarks

So, now that you're equipped with the information about what the score means, how do you go about calculating it?

The first step is to survey your customers, typically two to four times a year. The question you ask is simple: How likely are you to recommend us to a friend or colleague?

Using a zero to ten scale, responses are grouped into three categories:

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