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Interpret Customer Loyalty with NPS Score Ranges

Madhuri Gourav
December 20, 2023
 mins read

Last modified on

The Net Promoter Score (NPS) is still an important metric for companies in a variety of industries in the constantly changing field of customer experience. For businesses looking to assess and enhance their customer loyalty and satisfaction as we move through 2023, knowing what makes a good NPS score is essential. 

By describing NPS's scoring, ranges, and benchmarks for 2023, this blog post seeks to clarify the metric. 

Evaluate Customer Loyalty Through Net Promoter Score Analysis

What is the Net Promoter Score?

The Net Promoter Score is a widely used tool to measure customer loyalty and satisfaction. It is based on a single question: "On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?" 

The responses categorize customers into three groups: Promoters, Passives, and Detractors.

Formula to find NPS
Formula to find NPS

NPS Scoring and Ranges

Understanding the NPS Score Scale

  • Promoters (Score 9-10): Loyal enthusiasts who will keep buying and referring others.
  • Passives (Score 7-8): Satisfied but unenthusiastic customers.
  • Detractors (Score 0-6): Unhappy customers who can damage the brand.

NPS Score Ranges Meaning

The NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. This score can range from -100 (all Detractors) to 100 (all Promoters).

Industry-Specific NPS Benchmarks

NPS (Net Promoter Score) benchmarks vary significantly across different industries, as customer expectations and experiences can differ greatly from one sector to another. Understanding these industry-specific benchmarks is crucial for businesses to accurately assess their performance in terms of customer loyalty and satisfaction. 

Here's a look at NPS score ranges by industry and how NPS scoring typically pans out in various sectors:

  1. Retail Industry
  • NPS Score Ranges: Typically, retail businesses aim for an NPS in the range of 30-40. High scores in this range indicate strong customer loyalty, which is crucial in a competitive market.
  • NPS Scoring Importance: Retail businesses rely heavily on customer satisfaction and repeat business, making NPS a key metric for success.
  1. Financial Services
  • NPS Score Ranges: In banking and financial services, an NPS between 20-40 is common. This reflects the trust and reliability customers place in their financial institutions.
  • NPS Scoring Importance: NPS in financial services is often a reflection of customer trust and the quality of service provided.
  1. Technology and Software
  • NPS Score Ranges: Tech companies, especially in the SaaS (Software as a Service) sector, often see higher NPS scores, ranging from 30-60.
  • NPS Scoring Importance: In technology, a high NPS is indicative of product innovation, user experience, and customer support quality.
  1. Telecommunications
  • NPS Score Ranges: The telecom industry typically has lower NPS scores, often in the range of 10-30, due to high competition and varying customer expectations.
  • NPS Scoring Importance: NPS in telecommunications can indicate customer satisfaction with network quality, pricing, and customer service.
  1. Healthcare
  • NPS Score Ranges: Healthcare providers aim for higher NPS scores, often above 30, as patient experience and trust are paramount.
  • NPS Scoring Importance: In healthcare, NPS is closely tied to patient experiences and the quality of care provided.
  1. Hospitality and Travel
  • NPS Score Ranges: This industry often targets NPS scores above 30, as customer experience is directly linked to repeat business and referrals.
  • NPS Scoring Importance: High NPS scores in hospitality and travel reflect customer satisfaction with their overall experience, from booking to the end of their stay or journey.
  1. E-commerce
  • NPS Score Ranges: E-commerce platforms strive for NPS scores in the 30-40 range, focusing on customer satisfaction with the online shopping experience.
  • NPS Scoring Importance: Product quality, customer service effectiveness, and website user experience all have an impact on NPS in e-commerce.

Understanding NPS score ranges by industry is vital for businesses to benchmark their customer loyalty and satisfaction levels. NPS scoring offers invaluable insights into how customers perceive a brand, which is essential for strategic planning and improving customer experiences across all sectors.

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What constitutes a good NPS?

A good Net Promoter Score (NPS) is typically one that is higher than the average for your specific industry, as NPS can vary widely between different sectors. To determine what a good NPS is for your business, you need to consider the NPS target score and the NPS score scale.

NPS Score Scale

The NPS score scale ranges from -100 to 100. It is calculated by subtracting the percentage of customers who are Detractors (scoring 0-6) from the percentage who are Promoters (scoring 9-10). Those who score 7-8 are considered Passives and are not directly factored into the calculation.

Determining a Good NPS (NPS Target Score)

  • Above Industry Average: A good NPS is typically one that exceeds the average or median score for your industry. This indicates that your company is performing better than most of your competitors in terms of customer loyalty.
  • Positive Score: Generally, any positive NPS (above 0) is good, as it means you have more Promoters than Detractors. However, the higher the score, the better.
  • High Score Aspirations: Many companies aim for an NPS of 50 or higher, which is considered excellent in most industries. A score above 70 is exceptional, indicating extremely high customer loyalty and satisfaction.

Setting an NPS Target

  • Benchmarking: Look at industry benchmarks to set a realistic and competitive NPS target for your company.
  • Continuous Improvement: Even if your NPS is above the industry average, aim for continuous improvement. Regularly reassess your target to keep up with changing customer expectations and industry dynamics.

A good NPS depends on your industry norms and competitive landscape. Setting an ambitious yet achievable NPS target score and regularly measuring against it can guide your efforts to improve customer satisfaction and loyalty.

How to Continue Raising Customer Satisfaction by Benchmarking Net Promoter Score?

Benchmarking your Net Promoter Score (NPS) is a strategic approach to continuously raising customer satisfaction. 

Here’s how it can be effectively done:

  • Understand and Set Goals Based on Industry Benchmarks: Research the average NPS in your industry to set realistic and competitive goals for your organization.
  • Consistent Measurement and Analysis: Regularly measure your NPS and analyze the trends and feedback to understand the reasons behind your scores and identify areas for improvement.
  • Implement Feedback-Driven Changes: Use insights from NPS feedback to make targeted changes in your services or products, aiming to enhance customer satisfaction.
Constructive feedback implementation
Constructive feedback implementation
  • Engage and Involve Your Team: Share NPS results with your team and involve them in developing strategies to improve customer satisfaction, fostering a customer-centric culture.
  • Adapt and Evolve with Market Trends: Stay adaptable and continuously reassess your strategies to align with changing customer expectations and market conditions, ensuring ongoing improvement in customer satisfaction.

By benchmarking your NPS against industry standards and continuously striving for improvement, you can create a culture of excellence in customer satisfaction. This ongoing process not only helps in retaining customers but also attracts new ones through positive word-of-mouth.

Redefine the NPS Metric for Enhanced Customer Loyalty

Create an Action-Oriented Culture with NPS

While an NPS score's "goodness" varies depending on industry norms and specific business objectives, aiming for a higher score is always advantageous because it shows a company's dedication to providing outstanding customer offers advanced analytics to set NPS benchmarks, track trends, and identify key areas affecting customer satisfaction. It helps businesses set realistic benchmarks, develop targeted strategies, and align with industry best practices and customer expectations.

Book a demo with us and discover how our cutting-edge analytics can transform your approach to customer satisfaction and set new benchmarks for success in your industry.


1. What is considered a good NPS?

A good NPS varies by industry, but generally, a score above 0 is positive, 30-70 is considered good to great, indicating healthy customer loyalty, and above 70 is exceptional.

2. Is 70% a good Net Promoter Score?

Yes, a 70% (or 70 out of 100) NPS is considered excellent, indicating very high customer satisfaction and loyalty.

3. How do I convert NPS to eNPS?

NPS and eNPS are calculated using the same formula but with different survey audiences. To convert, simply apply the NPS methodology to employee feedback instead of customer feedback.

4. What is the NPS formula?

The NPS formula is:{NPS} = {% of Promoters} - {% of Detractors} 

where Promoters score 9-10, Passives score 7-8 (not included in the calculation), and Detractors score 0-6.

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