Introduction
When it comes to measuring customer loyalty, few metrics are as widely used as Net Promoter Score (NPS). But what exactly constitutes a “good” NPS score? Is a score of 30 acceptable in the banking sector, or should you aim for 50?
In this guide, we will break down:
- – What is considered a good NPS score?
- – NPS benchmarks by industry
- – How to improve your NPS score effectively
Understanding NPS Score Categories
NPS scores can range from -100 to +100, and are categorized as follows:
- 1. -100 to 0: Poor – More detractors than promoters
- 2. 1 to 30: Average – Positive but not exceptional
- 3. 31 to 50: Good – Indicates solid customer loyalty
- 4. 51 to 70: Excellent – Customers are actively promoting your brand
5. 71 to 100: World-Class – Unmatched customer advocacy
For instance, a retail bank scoring 40 is considered good, but in a high-service industry like hospitality, a 40 would be seen as average.
NPS Benchmarks by Industry in India
NPS benchmarks vary significantly by sector. Here are some average NPS scores in India (based on recent market data):
Why Benchmarks Matter
Benchmarking your NPS against industry averages helps you:
- 1. Set realistic targets
- 2. Identify areas for improvement
- 3. Understand where you stand relative to competitors
How to Improve Your NPS Score
1. Identify Detractors and Resolve Issues
- – Analyze negative feedback: What common pain points are mentioned?
– Respond quickly: Reach out to detractors within 48 hours with a personalized resolution.
– Close the loop: Show customers that their feedback led to actionable changes.
2. Enhance Customer Experience Touchpoints
- – Onboarding: Simplify the sign-up process to reduce friction.
– Customer Support: Train support staff to handle complaints empathetically.
– Loyalty Programs: Reward promoters for their advocacy.
3. Implement a Follow-Up Strategy
- – For Detractors: Ask for specific feedback and offer a corrective action plan.
- – For Passives: Ask what would elevate their experience to a 9 or 10.
- – For Promoters: Encourage referrals or online reviews.
4. Personalize the Experience
- – Use data analytics: Segment feedback by customer type (new vs long-term).
– Targeted surveys: Ask specific questions based on recent interactions.
5. Monitor NPS Regularly
- – Monthly Checkpoints: Track short-term trends.
– Quarterly Reports: Compare scores to benchmarks. - – Annual Review: Assess long-term impact of initiatives.
Real-World Example: Improving NPS in Banking
A leading Indian bank noticed its NPS score had stagnated at 32, with most detractors citing poor mobile app experience. By revamping the app and implementing a closed-loop feedback system, the bank improved its NPS to 46 within six months and increased referral rates by 15%.
How Zykrr Helps You Track and Improve NPS
Zykrr’s Customer Experience Management platform offers:
- 1. Real-time NPS tracking across multiple channels
2. Automated follow-up workflows for detractors
3. Advanced analytics to identify NPS trends and patterns
4. Industry benchmarking to set realistic targets
Ready to elevate your NPS? Request a demo with Zykrr
Frequently
Asked Questions
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What is a good NPS score in banking?
A good NPS score for banking in India is typically 50 or higher, but even scores in the 30–40 range are considered respectable given the competitive landscape.
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How often should we measure NPS?
For transactional feedback, measure NPS after key interactions (e.g., account opening, support call). For overall loyalty, conduct quarterly or semi-annual NPS surveys.
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What should we do with NPS feedback?
Categorize responses (Promoters, Passives, Detractors) and implement targeted follow-up actions to resolve issues, thank promoters, and convert passives into promoters.
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Can NPS be improved quickly?
Short-term improvements can be made by addressing immediate detractor pain points and implementing targeted follow-ups. Long-term gains require strategic CX enhancements.
