Net Promoter Score (NPS) serves as a valuable tool in understanding customer loyalty and overall satisfaction, providing a numeric scale from -100 to 100 for businesses to rank themselves within the global market. As per Qualtrics, a NPS score greater than 0 is considered decent, surpassing 20 is viewed as commendable, more than 50 is outstanding, and exceeding 80 reflects world-class levels of customer satisfaction.
However, the “goodness” of an NPS score is subjective and varies depending on the evaluation method utilized, either absolute or relative. In the absolute sense, a score exceeding 50 is typically deemed above average. In contrast, for a relative comparison to industry competitors, an above-average score can range anywhere from 0 – 40 or more.
It is worth noting that NPS scores can significantly fluctuate across differing industries. For this reason, it is recommended to first examine the average NPS score within a specific industry before determining what constitutes a good score for your organization. And remember, since the legitimacy of competitor scores and their calculation methods may be unclear, maintaining focus on your own customer feedback collection and continual monitoring of results is of utmost importance.
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What is a Good NPS Score for SaaS?
In the realm of Software-as-a-Service (SaaS) organizations, the median Net Promoter Score (NPS) usually fluctuates within the parameters of 30 and 36.
NPS scores can be interpreted in the following manner: a score from 0 to 30 is generally considered good, while anything above 50 can be seen as excellent. However, a score falling below 0 may raise some red flags regarding customer satisfaction.
To elevate the NPS scores, SaaS companies can utilize robust platforms for conducting NPS surveys. This could be either via email or directly within the app, followed by a thorough analysis of results. The analysis should encompass both quantitative measures and qualitative feedback as it provides actionable insights to improve customer experiences and subsequently, NPS scores.
Average Net Promoter Score for SaaS for B2B and B2C
On average, most sources suggest that Software as a Service (SaaS) companies typically have a Net Promoter Score (NPS) between 31 and 36. Nevertheless, some argue that a superior NPS for SaaS businesses would be roughly 50. Keep in mind, these numbers can fluctuate considerably between varying industries and specific companies.
- As for B2B SaaS enterprises, the prevailing NPS rests around 41 in the United States. Do note that the score could differ based on the customer demographic.
- Unfortunately, specific data for B2C SaaS aren’t readily available. However, you could potentially use the general SaaS NPS as a reference point in these instances.
It is crucial to comprehend that NPS scores can sway depending on numerous factors like the industry and the particular condition of the company. Hence, always consider comparing your NPS with competitors in your industry.
All said, having a commendable NPS score is imperative. It not only solidifies trust in your startup but also serves as an excellent base for marketers to concoct persuasive strategies to enhance the startup’s credibility.
NPS Benchmarks by Industry
Understanding the NPS of SaaS Companies
The Net Promoter Score (NPS) is a simple, yet powerful metric that measures customer loyalty and satisfaction. It is calculated by asking customers a single question:
“On a scale of 0-10, how likely are you to recommend our product or service to a friend or colleague?”
Based on their responses, customers are then classified into three categories:
- Promoters (9-10): Loyal and enthusiastic customers who are likely to recommend your product or service to others.
- Passives (7-8): Satisfied but unenthusiastic customers who may be swayed by competitors.
- Detractors (0-6): Unhappy customers who may actively discourage others from using your product or service.
Calculate NPS (Run an NPS Survey)
Net Promoter Score (NPS) is a tool for quantifying customer satisfaction by asking a simple survey question:
“How likely are you to recommend your SaaS product to a friend or colleague?”.
NPS is calculated by subtracting the percentage of detractors (0-6) from the percentage of promoters (9-10). Passives (7-8) are not included in the calculation but are still important to consider.
The SaaS industry as a whole has an average NPS score of 31-36.
A positive NPS score (above 0) indicates that a company has more supporters than detractors.
A score of 0-30 is considered good, 30-70 is great, and above 70 is excellent. However, it is important to note that industry benchmarks are often inaccurate and irrelevant, and a company’s focus should be on how its NPS changes over time and the reasons behind those changes.
To calculate NPS, SaaS companies can run surveys in-app or by email. There are many NPS tools available that collate customer scores and create industry-specific benchmarks.
In addition to NPS, SaaS companies can use other metrics like Customer Satisfaction (CSAT) and Customer Effort Score (CES) to get a clearer picture of customer satisfaction.
Finally, it is essential to act on the findings of NPS surveys to improve customer satisfaction and drive business growth.
SaaS NPS Benchmarks by Industry
While the average NPS score for the SaaS industry is 31, it’s important to understand that scores can vary significantly between different companies and industries.
Here are some benchmarks for various industries:
- Consumer Software: 19
- Enterprise Software: 33
- Consumer Services: 24
- Business Services: 23
These benchmarks can help SaaS companies gauge their performance relative to their industry peers. However, it’s important to remember that the ultimate goal is to continuously improve your NPS score and deliver exceptional customer experiences.
Factors Affecting SaaS NPS Scores
Several factors can impact a SaaS company’s NPS score. Some of the key factors include:
- Product Quality: A well-designed, user-friendly, and reliable product is more likely to generate positive customer experiences and higher NPS scores.
- Customer Support: Prompt, knowledgeable, and empathetic customer support can significantly influence customer satisfaction and loyalty.
- Pricing: Competitive pricing and a clear value proposition can help attract and retain customers.
- Onboarding and Training: A smooth onboarding process and comprehensive training materials can help customers get the most out of your product, leading to higher satisfaction levels.
- Regular Updates and Improvements: Continuously updating and improving your product based on customer feedback can help maintain and even increase customer satisfaction.
Analyze Net Promoter Score of SaaS Business
To effectively measure and improve your NPS score, consider implementing the following best practices:
- Regularly Survey Customers: Periodically surveying customers helps you stay informed about their experiences and gather valuable feedback for improvement.
- Segment Your Customer Base: Analyze NPS scores by different customer segments (e.g., industry, company size, or product usage) to identify trends and areas for improvement.
- Close the Feedback Loop: Actively engage with customers who provide feedback, especially detractors. Address their concerns and demonstrate your commitment to improving their experience.
- Leverage Promoters: Encourage promoters to share their positive experiences with others through referrals, testimonials, and case studies.
- Monitor NPS Trends: Track your NPS score over time to identify trends, monitor the impact of improvements, and set realistic targets for improvement.
Conclusion: Industry Average NPS Score for SaaS Companies
The average SaaS NPS score of 31 serves as a benchmark for companies in the industry. However, it’s essential to focus on continuously improving your NPS score and delivering exceptional customer experiences.
By understanding the factors affecting NPS scores and implementing best practices for measuring and improving customer satisfaction, SaaS companies can foster loyalty, drive growth, and maintain a competitive edge in the market.
