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What A Net Promoter Score Can Reveal About Your Business

For most successful organizations, understanding customer sentiment is crucial for long-term success. One of the most reliable metrics to gauge customer loyalty is the Net Promoter Score (NPS). But what exactly is a net promoter score, and what is considered a good score?

Let’s break down what an NPS is, how it’s calculated, and what certain scores can indicate about the health of customer relationships.

What is a Net Promoter Score?

The NPS is a metric used by businesses to measure customer loyalty and satisfaction. Introduced by Fred Reichheld in 2003, NPS has become a popular tool for assessing the likelihood that customers will recommend a company’s product or service to others. It’s based on a single question:

“On a scale from 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?”

Responses are then classified into three categories based on their rating:

  • Promoters (Score 9-10): These are customers who are extremely satisfied with your product or service and are likely to recommend it to others. They are your brand advocates.
  • Passives (Score 7-8): These customers are satisfied but not overly enthusiastic. While they may not actively promote your business, they are also not likely to detract from your reputation.
  • Detractors (Score 0-6): These are customers who are dissatisfied with your product or service and may even discourage others from using it. Their negative experience could harm your brand image if not addressed.

How to Calculate NPS

To calculate a Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters:

NPS = %Promoters−%Detractors

So, if 60% of your customers are Promoters and 20% are Detractors, your NPS would be:

NPS= 60%−20% = 40

What’s a Good Net Promoter Score?

Depending on your industry, NPS scores can be categorized as follows:

NPS Score of 70+: Excellent

This is a world-class score and indicates that your business is generating significant customer loyalty and satisfaction. For B2B service providers, an NPS of 70+ signals that your clients are highly satisfied and are likely to recommend your services to others. Achieving this score means you have deep, trusted partnerships with your clients, where expectations are consistently met or exceeded.

B2B Average: The average NPS for B2B service providers typically falls between 30-40, meaning a score of 70+ is well above the industry norm, reflecting exceptional client loyalty and satisfaction.

NPS Score of 50-69: Great

This is still a strong score, indicating that your clients are generally happy and loyal. While not perfect, there is room for improvement. For B2B providers, an NPS in this range shows that your service is valued, but there may be areas where clients feel you could provide even more value or improve certain aspects of your offering, such as communication, support, or feature customization.

B2B Average: Many B2B service providers score in this range, as their clients often have specific, high expectations. The B2B average for service providers tends to fall between 40-50, meaning that an NPS score in the 60s is a solid indicator of customer satisfaction.

NPS Score of 30-49: Good

This score suggests that your business is doing well, but you have a proportion of detractors who may be unhappy with some aspects of your service. For B2B providers, an NPS in this range indicates that, while the majority of your clients are satisfied, there are specific pain points—such as delays in service delivery, lack of personalized support, or unclear communication—that could be causing dissatisfaction.

B2B Average: Many B2B service providers score in the 30-40 range, reflecting a solid but not exceptional level of customer satisfaction. If your NPS falls here, you’re within the industry average, but there are still opportunities for improvement to increase loyalty and reduce detractors.

NPS Score of 0-29: Needs Improvement

If your NPS falls in this range, you may have some serious issues with client satisfaction and retention. You’ll want to pay close attention to the feedback from your detractors and identify areas for improvement. For B2B providers, this score suggests that a significant portion of your clients is dissatisfied with key aspects of your service, whether it’s product quality, project management, or client support. Taking swift action is necessary to prevent further deterioration in client relationships.

B2B Average: B2B service providers scoring in this range might face challenges in areas like service delivery or responsiveness. While it’s still possible to improve and regain client trust, an NPS in this range indicates that addressing client concerns should be a top priority.

NPS Score of -100 to 0: Poor

A negative score means that your business has more detractors than promoters, which could be a red flag for your customer experience strategy. Immediate action is needed to address client dissatisfaction. For B2B service providers, an NPS below zero can suggest unmet expectations, poor communication, or failed service delivery. Addressing these concerns immediately is crucial to avoid further damage to client retention and business reputation.

B2B Average: Scores below zero are rare in the B2B service provider industry but can occur when client expectations are consistently unmet. If your NPS falls below zero, it’s critical to conduct a thorough review of your processes, identify where your clients’ needs are not being addressed, and implement corrective actions to improve client experience.

Factors That Influence NPS

Several factors can influence a Net Promoter Score, both positively and negatively.

Let’s take a look at some of the key drivers:

  • Product or Service Quality: If your customers consistently enjoy the product or service you provide, they’re more likely to be promoters. A strong, reliable product is the foundation of a high NPS.
  • Customer Service: Responsive, helpful, and friendly customer service can turn a neutral or dissatisfied customer into a promoter. On the other hand, poor customer service is one of the primary reasons customers become detractors.
  • Customer Expectations: If you consistently meet or exceed customer expectations, your NPS will likely be higher. However, if you under-deliver or mismanage customer expectations, detractors may start to appear.
  • Brand Image and Reputation: A positive public image, along with trust in your brand, encourages customers to promote your business. Reputation is built over time through quality experiences and transparent communication.
  • Customer Engagement: Actively engaging with customers through surveys, social media, and regular communication helps to build stronger relationships. Customers who feel valued and heard are more likely to recommend your business.

Why Net Promoter Scores Should Matter to You

When it comes to choosing a company to do business with, trust and reliability are paramount. Evergreen’s NPS of 64 is a clear indicator that we excel in these areas. But what exactly does this score mean for you as a potential customer? In simple terms, it means that a significant majority of our customers are not just satisfied—they’re enthusiastic about recommending us to others.

This level of endorsement is a powerful testament to the quality of our products and services, and it can give you confidence that you’ll have a positive experience with us too. Here are a few more reasons to keep an eye out for high NPSs:

1. Customer-Centric Approach Our NPS score highlights our dedication to putting customers first. We actively listen to feedback and continuously strive to improve our offerings. This means that your needs and concerns will be addressed promptly and effectively, making you feel valued and appreciated from the moment you engage with us.

2. Predictive of Future Success A strong NPS is not just a snapshot of current satisfaction; it’s also a predictor of future success. Companies with high NPS scores tend to have better customer retention and growth rates. By choosing us, you’re aligning yourself with a business that is not only thriving now but is also poised to continue delivering excellent service in the future.

3. Community and Advocacy An impressive NPS score indicates a community of satisfied customers who are willing to advocate for our brand. This sense of community can be very appealing, as it means you’ll be joining a positive and supportive network. Knowing that others are enthusiastic about our business can provide the reassurance you need to make a confident decision.

4. Competitive Advantage In a crowded market, our high NPS score sets us apart from the competition. It signals that we are leaders in customer satisfaction and loyalty. This competitive edge can be a deciding factor when you’re comparing multiple options and looking for the best possible experience.

An NPS is a valuable metric that reveals how customers feel about your business, highlighting satisfaction, loyalty, and the likelihood of referrals. While what’s considered a “good” score varies by industry, a score of 50 or higher is generally a strong benchmark for most businesses. If you’re evaluating potential partners, a high NPS score signals a company that consistently delivers quality products, exceptional service, and builds lasting relationships.

Whether you’re just beginning to measure your NPS or have been tracking it for years, this score is a powerful indicator of your customers’ overall experience. If a company maintains a high NPS, like Evergreen, it’s a sign that their clients are loyal, satisfied, and willing to recommend their services—important factors for ensuring a reliable and successful partnership. If you’re not satisfied with a provider’s NPS score, it might be time to look for a business that values customer feedback and continuously works to improve customer experiences.