Categories: Customer Experience ManagementTags: , Published On: June 20th, 2023
Why NPS benchmarking wastes time and money

Benchmarking in general means that you compare your business to other companies in the same industry to analyze how your organization is developing in comparison to your competitors. You can do this with NPS by comparing your company’s NPS with the NPS of your direct competitors. One way to do this is through yearly recurring NPS benchmark reports. Reports for which you often must pay if you want in-depth insight. Don’t do this! We believe that NPS benchmarking is a waste of time and money.

NPS is measured at different times

Let’s say your average Net Promoter Score (NPS) is 45 and a competitor has an NPS of 60. This seems to be a big difference, but is the history of the company considered here? If, as a starting company, you have just started measuring the NPS and are asking for the opinion of your customers for the first time in this way, it is likely that only customers with complaints will respond. A company that has been measuring their NPS for a longer period usually has more respondents who give a higher NPS. These customers have more experience with the company and the company has probably already built up a legion of loyal customers over the years who would like to give their positive feedback.

You must be sure that the NPS is measured at the same time in the customer’s journey and at the same touch point. Sometimes, the NPS is only measured after the customer has been in contact with customer service, wh