Are Your NPS Score Ranges Above Industry Standards? (2025)

The Net Promoter Score is a metric for measuring customer loyalty and satisfaction.

It also shows the likelihood of your current customers recommending your business to others. As you can see, this is a very important system of measurement – but not many businesses know how to use it.

If you are in this category, then you are on the right page. In this guide, we’ll explore NPS in detail, how to calculate your NPS scores and average net promoter scores.

Once done, you’ll have enough information to improve your customer satisfaction levels.

Table of contents
Calculating your NPS
Absolute and Relative NPS Scores
Benchmarking your Net Promoter Score
Factors that Affect Your NPS Score
Your Net Promoter Score is Below Average: What Next?

Calculating your NPS

Fred Reichheld, the brains behind the concept of NPS, split the score ranges into different categories you will need to calculate yours. Each customer in your business will fall into one of these categories depending on the number they choose:

Promoters: These are customers who give you a score rating of 9 – 10.

They are loyal customers who will always be valuable to your business and willing to refer those around them.

Passives: Customers who give a score rating of 7 – 8.

These are customers who are currently fine with what you offer. However, they have a 50/50 chance of staying with you or leaving for a competitor who has a better offer. Those in this category won’t go out of their way to refer others to your business.

Detractors: These are clients who give a score rating of 0 – 6.

They are customers who are unhappy with your business. Clients like these could damage your business reputation by leaving negative reviews and spreading their negative experiences to other prospects.

All these categories are important when calculating your average scores. To do this, use this formula: (%) Promoters – (%) Detractors.

Based on the formula above, your business NPS score will fall between -100 to +100. If your score is closer to -100, it means that your detractors are more than your promoters. A score of -100 means that you don’t have any promoters, which is a bad sign.

However, a score closer to 100 indicates that your Promoters are more than your Detractors, meaning you are doing something right.

Absolute and Relative NPS Scores

To find out if your Net promoter score level is above the industry average, we’ll check out the two ways of evaluating your NPS:

1. Absolute NPS

This compares your score against the average NPS score from all sectors.

You can use the average net promoter score from most major sectors published by Qualtrics XM institute to compare. Absolute NPS does not consider your industry. Instead, it gives you an idea of whether your customers are satisfied or not.

The industry average for absolute net promoter score based on the -100 to 100 are as follows:

• -100 – 0: Majority of your customers have a negative experience
• 1 – 30: Fine, but could do with some improvement
• 31 – 50: Average range for most businesses
• 71 -100: High-performing business

2. Relative NPS

Uses your net promoter score as a marker to compare against other companies in your industry. This is typically how you perform against the competition and is a sign that your customers are satisfied.

Now, based on the above, you might believe getting 100 points should be your objective. While this may be true, it is not exactly the case.

It is true because your overall objective should be to have more promoters so you can move closer to +100. You’ll have to improve your customer experience so they can get the value they want.

In the relative method for calculating net promoter score, you must regularly compare your scores at intervals to make sure you are always progressing.

Now, it is not exactly the case because a +100 is hard to get and maintain. A score of +100 means all your clients are totally happy with your business.

This is hardly ever true even when you try to do everything right. Instead, it is best to use the score as a way to see if you are meeting the needs of your customers.

This measurement strategy will only be of benefit to you if you can take steps to improve the customer experience.

Benchmarking your Net Promoter Score

As mentioned, the score above should just be a guide. A good NPS score may differ depending on your industry.

For instance, some markets have a net promoter score that stays within 20. Your business may fall within this category, and it does not necessarily mean you aren’t doing well. If you are in this category, the steps below can help.

1. Compare Your Score with the Industry Average

Average NPS scores are not the same in all industries. This means it is pointless to compare your NPS score with those from companies that are not related to yours.

For instance, businesses around consumer goods are known to bring more happiness to customers than advertising. Thus, their NPS score tends to be higher.

If you are in the service business, it’s not smart to compare yourself with a company that is in construction. This will give you the wrong insights. Always make sure you benchmark your NPS against the average in your industry.

2. Compare your Score by Geography

The region is another factor that affects your NPS score. Consumer behavior differs depending on the region, and this affects how they rate scores.

For instance, clients in specific countries are likely to give you high scores, while others remain conservative with scores.

A good example is Japan. Here, customers are more likely to give you a lower rating since they consider it poor manners to rate businesses too high or low. They don’t really consider how well the businesses perform at this point.

Alternatively, customers in Mexico or India tend to give a higher score when they like the services of a company.

So, note this when evaluating your scores, as the location and cultural differences play a major role in the score you get.

3. Consider the Survey Channel

Take note of the channels you are getting the survey results from. In most cases, you will use either SMS, social media, email, or your personal app to carry out surveys.

You can’t compare your NPS from your app to that of email surveys because the response rates are different.

While social media is growing in popularity and starting to take the lead when it comes to surveys, other factors may affect the outcome. Things like cost, outreach method, and approach may result in some channels providing better results than others.

Regardless of the channel you settle for, opt for an NPS campaign using the same survey channel as the benchmarked competitor.

Doing otherwise will leave you with inaccurate results.

4. Use your initial NPS as your Benchmark

By now, you already know that a good NPS score is relative. You are on the right track so long as the new score is better than your last one. To accurately measure progress, we recommend you compare your NPS over the last few months.

If you notice a significant increase in your score, it means you are on the right track and heading towards developing a business with high customer satisfaction.

In contrast, if there is a major decline in the number, it is a sign that you are not doing something right and must take specific steps.

If you keep on improving your net promotion score, you are likely to ensure a positive customer experience and, ultimately, happy customers.

However, make sure the number of respondents is enough to get the right results.

5. Compare by Company Size

The size of your company also plays a significant role. If you are a startup, you’ll most likely have a very high NPS.

This is mainly because you can dedicate your time to satisfying a smaller number of customers. However, this phase does not last long, and you’ll notice a drop as your business starts to grow.

Those who started doing business with your company earlier will support you and recommend your services to others. But as you continue to grow and reach a larger customer base, there is a chance that the customer feedback you get will vary.

Factors that Affect Your NPS Score

After getting your industry benchmarks, you’ll still want to note other factors that can influence your NPS score.

1. Your Market

Satmetrix states that your NPS score directly reflects your market share. Thus, it is vital to note how you perform against the competition.

If your score is high, then you’ll have a larger market share. In contrast, if you have a low score, it is a sign that you have a lower market share. Understanding your market position is an important part of improving your Net Promoter Score.

2. Your Competition

Your NPS score will also be influenced by the level of competition in your industry and your unique value proposition. If there is a high level of competition, businesses must take creative steps and quickly improve customer services.

If you are dealing with companies that are always taking steps to improve, you’ll need to keep up to get an average score.

For instance, Tesla has a high NPS in the market because it is taking the lead in the industry with minimal competition. Even though many other automobile brands have started to release electric cars, none beats Tesla in terms of innovation.

Due to this, customers don’t have many options and are more satisfied with its offers.

3. Customer Tolerance Levels

Tolerance is another vital factor that can influence your NPS benchmarks. The opinions of customers are likely to be driven by the value they get from your services. To measure your business tolerance, ask this question:

“How likely are your clients to get angry if you fail to immediately address their needs on a scale of 1 – 10?”

If you get scores closer to 10, it means your business is in a low-tolerance sector when it comes to service interruption.

However, if it is closer to 0, it means you are in a high-tolerance industry. You can increase your tolerance level for high benchmarks by providing easier accessibility and painless touchpoints for customers.

This is what many companies like Netflix and Uber have been able to achieve even though they are in low-tolerance industries.

4. Customer Expectations

The expectations of customers will differ depending on the type of business you run. Retail businesses focus on customer services, while professional services like banking focus on expertise.

Expectations are important because they influence how generous a client will be with feedback. For instance, customers are more likely to be forgiving towards an employee at the department store compared to someone responsible for their heating or plumbing.

Your Net Promoter Score is Below Average: What Next?

If after calculation, your NPS is not as it should be, what do you do next?

The reality is that there is no quick solution to instantly raise your scores. Instead, you’ll need to commit yourself to giving customers an experience they will remember.

A customer-focused mindset will allow you to improve your customer success and service teams.

Let’s check out some useful tips that can help improve your score:

Follow-Up:

Once you get feedback from your NPS survey, make sure you follow up. Reach out to customers who are unhappy and try to find out the problem. If a customer feels heard, it will show you care, and there will be a higher chance of them becoming Promoters.

Teach your Team the Importance of NPS:

If your team does not know what NPS is all about and its significance, how do they work towards it? Educate your team on strategies to measure and improve NPS scores.

Make the needed changes:

Once you get the results from your survey, make the necessary changes. If you don’t find areas to adjust in your business, your score will never go up. Be ready to change your company’s messaging, structures, and policies for better outcomes.