The Marketing Strategist:
NPS Benchmarks: Are You Delivering a Truly Great Experience?
“How likely are you to recommend our organization to a friend or colleague?”
This question, which drives the Net Promoter Score (NPS), has been shown to be the highest predictor of customer loyalty than any other question in a Voice of the Customer study, according to research conducted by Bain & Company and Satmetrix. (See below for a primer on the NPS approach.)
The growth and popularity of NPS across the technology industry, among many others, means that industry benchmarks are available to gauge relative performance and set targets for improvement.
Industry Benchmarks: A Key Benefit of NPS
There is no shortage of criticism for NPS. However, the ability to benchmark against other similar organizations is one of the most compelling reasons why businesses use NPS as part of their customer satisfaction and loyalty programs.
It’s critical to dig into the particulars. Are you asking the right customers? Are you capturing data from true decision makers or just end users? What about the comparative data you’re using to benchmark? Who are providing those scores?
A key tenet in NPS and other customer research is “ask the people who matter.” If you’re trying to understand the loyalty and advocacy of the decision makers for your services and solutions, random surveys of end users may not provide the data you need.
B2B Technology Services: Benchmarking Apples to Apples
ITSMA’s NPS benchmark for B2B technology services and solution providers focuses directly on the top decision makers and influencers identified by key account managers for the companies involved in the research. If you’re marketing and selling high-value technology services and solutions, our benchmark provides a critical window into the attitudes of “the people who matter.”
ITSMA 2019 NPS Benchmark for Global B2B Technology Services and Solution Providers:
A Great Experience Turns Passives into Promoters
The average score of 33 is higher than NICE Satmetrix’s average NPS for all types of B2B companies, which is 23, but short of best-in-class NPS at 50 or greater.
The good news is that the average NPS for global B2B technology services and solution providers is rising. As companies continue to gather constructive feedback, identify root causes, address problems, and close the loop, client satisfaction improves. By going further and analyzing client comments to identify what turns passive clients into promoters, B2B services and solutions providers are delivering great experiences that create loyal fans.
Interested in learning more about NPS and how other companies are using it to drive business growth? Read this case study on how Unisys leveraged their CSAT/NPS results to identify advocates and create an enviable collection of client success stories and videos. Contact me at firstname.lastname@example.org to learn about ITSMA’s NPS research and benchmarks.
A Primer on NPS
The Net Promoter Score (NPS) is calculated with responses to a “likelihood to recommend” question using a 0–10 scale, where 0 is not at all likely and 10 is extremely likely. Customers are segmented into three different groups based on their rating:
Promoters: 9–10 rating
Passives: 7–8 rating
Detractors: 0–6 rating
The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.