NPS Varies By Industry
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Julia Cheek shares insights about Net Promoter Score (NPS) interpretation, emphasizing that the metric's value is highly contextual and industry-dependent. She explains how her company's NPS of 60 should be evaluated within the healthcare industry framework.
Key Points:
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NPS Interpretation is Industry-Specific:
- A 60 NPS for a bank would be exceptional
- For entertainment/movies, 60 would be less impressive
- World-class NPS is generally considered 80 or above
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Healthcare Industry Context:
- Most healthcare services hover around 0 or negative NPS
- Their 60 NPS is significantly above industry average
- Company maintains 4.5/5 stars average product rating
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NPS as a Business Metric:
- Viewed as a favorable VC metric
- Has limited actionability for decision-making
- Primarily useful as a benchmarking tool
- Helps compare performance against industry standards
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Company's Perspective on NPS:
- Uses it mainly for benchmarking purposes
- Recognizes its limitations as a standalone metric
- Values it as part of broader performance indicators
- Considers it positive given healthcare industry standards
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