At first glance, it seems that the NPS indicator can tell everything about a company, but this is not true. In fact, to form an idea of a business, it is necessary to take into account many factors. Thus, a supermarket with an NPS of 40 can be an outsider among its peers, and an IT company with an NPS of 22 can be a leader in its segment.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
Factors Affecting NPS Score
Market segment competition
This factor includes the moments of filling italy mobile phone numbers database your niche with offers and the uniqueness of your product (service) among them.
Let's say your business is part of a crowded segment (banking, insurance, healthcare, hospitality). Then you shouldn't expect the highest NPS scores, an average score would be a good result for you.
However, if you operate in an unfilled niche with a low level of competition (for example, you produce innovative developments in the medical or industrial field), then your net promoter score should be high.
Example: One of the leading US cellular companies, Verizon Wireless, has an NPS of 38 (this is an average score), but is the best in its industry. Other telecommunications companies that compete with each other, AT&T and MediaCom, show NPS of 15 and 22, respectively. And in this case, the customer loyalty index does not indicate low quality of services and customer dissatisfaction, but rather the high competitiveness of the market segment.
Customer tolerance
Consumer tolerance is the absence of aversion that encourages negative comments about a company. Its impact on the NPS indicator is quite noticeable, because buyers are usually quite demanding when it comes to everyday products and do not hesitate to express their opinions about them.
Specifics of the enterprise's activities
For example, to become a client of a SaaS (software as a service) company, you need to pay a certain amount. This means that even if the consumer is not satisfied with your service, he or she may continue to use it only to avoid additional financial losses. It is quite difficult for a SaaS business to retain customers and their loyalty. As a rule, the NPS indicator for SaaS companies remains below average.
What can affect the Net Promoter Score (NPS)
-
- Posts: 252
- Joined: Tue Jan 07, 2025 4:25 am