New multi-industry NPS benchmarks published

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By: Wise Marketer Staff |

Posted on March 25, 2010

New multi-industry NPS benchmarks published

Satmetrix has published its '2010 Net Promoter Industry Benchmarks' for the insurance, financial services, airlines, telecommunications, technology, retail and online services industries, with leaders including brands such as USAA, Charles Schwab, JetBlue, Verizon Wireless, Apple, Trader Joe's, Costco and Amazon.com.

The rankings were based on survey responses from more than 19,500 US consumers who had purchased products or services from each company within the previous 12 months.

Each company's Net Promoter Score (NPS) is based on customers' likelihood to recommend the company's product or service. NPS is calculated as the percentage of customers who are Promoters (those rating the company at 9 or 10 on a 10-point scale), minus the percentage who are Detractors (those rating the company at 6 or below). Consumers also rated each company on various aspects of customer experience including product or service features, customer service and overall value, allowing Satmetrix to analyse drivers of loyalty and performance gaps for each company.

Highlights for each industry studied included:

  • Insurance A significant contrast appeared between property and casualty insurers, and companies offering life and health insurance. Scores in life and health were lower, particularly in the health insurance sector. Blue Cross Blue Shield was the only health insurance company with a positive NPS, scoring +5% in a sector with an average of -13%. State Farm led the life insurance category with an NPS of +34%, more than 22 points higher than runner up New York Life, while USAA dominated the auto insurance sector at 78%, more than 37 points ahead of runner-up GEICO. In homeowners insurance, USAA scored 69%.  
  • Financial services Brokerage and investment institutions saw a significant increase in NPS over the previous year, signaling a recovery in customer trust since the 2008 market crisis. Overall, the sector achieved an average NPS of 29%, up more than 20 points since 2009. Charles Schwab held its ground as the sector leader with an NPS of 46%. Although the credit card sector fared poorly overall, American Express and Discover maintained their earlier strong performance. USAA, a non-traditional player in the banking sector, stood out as the leader with an NPS of 81%, placing it 40 points ahead of runner-up BB&T.  
  • Airlines JetBlue and Southwest were clear frontrunners in the airline industry, scoring more than 40 points above the industry average. JetBlue Promoters referenced the in-flight experience, extra legroom, quality snacks and television, while Southwest Promoters praised the airline for its friendly service and for not charging baggage fees.  
  • Telecommunications Verizon Wireless led the cellular phone service sector with a score of 41%. Time Warner Cable's Road Runner High Speed Online led the internet service provider category with a score of 21% in an industry whose average NPS was a mere 4%. DIRECTV led in the satellite and cable TV category with an NPS of 27%.  
  • Technology Apple, with an NPS of 78%, continued as the top performer in the computer hardware sector. In the consumer software sector, Adobe Systems (37%), Intuit (36%), and Symantec (36%) were the frontrunners, with security software provider Symantec recording the most significant increase between 2007 and 2009.  
  • Retail The grocery/supermarket retail sector achieved the second highest average NPS of all industries with Trader Joe's and Wegmans leading the way at 69% and 67% respectively. Big box membership clubs Costco (66%) and Sam's Club (61%) led the department/wholesale/specialty sector, followed by Target and Lowe's.  
  • Online services Amazon and eBay led the online shopping sector with NPS of 71% and 65% respectively, followed by Barnes & Noble at 59%. In the online search and information category, Facebook scored 65%, moving into a leading position alongside Google at 63%.

"We continue to see the impact that the customer experience has on loyalty and business growth," concluded Deborah Eastman, CMO for Satmetrix. "Best-in-class companies are those that put in place the necessary processes to listen to, learn from, and take action on what their customers tell them about their performance."

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