nps benchmarks by industry 2022

Youll be able to turn NPS benchmarking and monitoring into a sustainable process that doesnt require a team of researchers. As of March 2022, Netflixs churn rate increased to 3.3%, which correlated with an increase in subscription prices. We had more than 1000 answers in one day using Survicate's NPS surveys. As an example, if you ask NPS and open feedback for both service and for the whole process, first ask NPS and open feedback on service and then NPS and open feedback on the whole process. The technology industry's NPS score currently sits at 60 - a score above 50 is normally considered excellent. A good net promoter score for one industry may not be good for another. Qualtrics does not store it. A few ways that you can make the most of your Promoters are: Your NPS benchmark doesnt have to stop at comparing the average NPS scores for your industry. NPS Analysis 8. The NPS survey management system (that includes survey creation, distribution, and analysis all in one tool) is one of Survicates flag features used by multiple companies across different industries. By understanding how and why people are rating your business as they are, you can improve your NPS score over time. It was high time to draw on our database and make a contribution to the NPS landscape. The industry average is between 31 41 and is often impacted by seasonal trends. The answer provides very little insight. NPS survey by adding a follow-up question, people are more reluctant to give companies top scores. Then use the following formula to calculate your NPS score: Read more: 18 NPS questions & how to increase response rate. I'm also a big fan of value-based marketing, educational content, and cats. It's important to note that only some of the Net Promoter numbers are based on statistically significant data provided by surveyed customersthose are the ones where we collected the data ourselves and took Median scores in our benchmark report (find that here). A study by Gartner found that 80% of businesses expect to compete solely on the basis of customer experience. Your industry can impact your NPS . How does their overall customer satisfaction compare to that of your competitors' customers? Benchmarking against others in your field can: Give you an indication of how your company is faring against the competition, Give you clues to what level of effort you need to get ahead of the curve, Help you identify experience gaps that you can utilize Read more on NPS benchmarks NPS by Industry (2022 Net Promoter Score Benchmark) A Net Promoter Score (NPS) is a standard customer satisfaction metric to measure how loyal customers are to a brand overall. Your business has only been in operation for two years and is a relatively new player in the market. That looks like a personal email address. The most typical types of survey bias are: All respondents should have an equal opportunity to receive an invite to answer your survey. Reach new audiences by unlocking insights hidden deep in experience data and operational data to create and deliver content audiences cant get enough of. This data takes publicly available NPS data scores, categorizes them by industry or niche, and takes the average scores or ranges for each to develop a benchmark. This years B2C reports draw on responses from more than 63,000 US consumers, covering 192 brands. This is a key group whose NPS survey responses can be further analyzed to prevent customer churn. Read our guide to Account Experience to learn how to setup your NPS program properly, or reach out to us today to talk it through with an expert. If it has a significant, unexpected drop in score. Youll learn how to identify the key areas of focus across the customer journey, so you can take meaningful actions that improve your customer relationship with customers. Generally speaking, any NPS above 0 is positive since it indicates you have more fans than haters., If you have a score of 30 and up, youre good to go. We plan to update the report periodically with new results. Apple's NPS of 61 is also the result of quickly closing the loop on customer feedback. How do you know what score is apt for my business? How to improve CX using customer feedback management. This bias can be seen in the car industry, where changing cars is very expensive and so a customer may find themselves recommending the manufacturer, event if they arent 100% happy. Heres what they shared with us: Veeam Softwares NPS improvements have also been accompanied by phenomenal financial gains. On the chart above, you can see the average NPS for each industry, as well as their highs (25th percentile) and lows (75th percentile). What is customer satisfaction? TRADEMARKS, AND NET PROMOTER SCORE AND NET PROMOTER SYSTEM ARE SERVICE MARKS, OF BAIN & COMPANY, INC., SATMETRIX SYSTEMS, INC. AND FRED REICHHELD. Europeans, for example, tend to rate more conservatively (clustering in the middle) whereas feedback from customers in the United States tends to be extreme (lots of 1s and 10s). After all, you dont want the majority of your customers to be unsatisfied with your services. The industry average provides a good baseline, while the leaders in your field give you a level of excellence to aim for. According to SurveyMonkey, the average net promoter score is +32 and the following ranges are the generally accepted ratings for bad or good NPS: However, knowing your NPS score isnt helpful if you dont use this data to improve your business to earn more loyal and happy customers. SAP also shared that the companys objectives for 2017 will be centered around customer loyalty, employee engagement, growth, and profitability. These closer relationships can translate to: Weve already covered why you should be comparing your NPS to others in your industry, but its worth noting that there a couple of factors that can affect NPS benchmarks: Net Promoter Scores are impacted by economics, politics, and current events. Its often something that smaller businesses feel is too much (or too expensive) to do, but that is largely incorrect. But this wasnt his first soiree into NPS. This is a small increase from 2020, the last year we reported data, and reverses the sharp drop-off we witnessed between 2018 and 2020. It showcases our customers average Net Promoter Scores across 11 industries, based on 1056 surveys collected across 2022.. Read more: Customer Churn Prediction Using Machine Learning_. Take the time to understand the average scores for your industry NPS benchmark and why it is what it is. How to benchmark it? Compare your NPS NPS Benchmarks NPS benchmarks by industry Explore and compare NPS benchmarks for 20 industries. Learn why customer relationship measurement (CRM) isnt enough - and why customer relationship health management is the new way to create impactful experiences. Your customer experience program is superb, and its your market differentiator.. These unhappy customers are unhappy for a reason, but sharing the improvements youve made as a result of their negative scores can help them feel valued and heard. Turn tweets, emails, documents, webpages and more into actionable data. Let's start by deep diving a B2B tech company, Alyce. The Net Promoter Score for the leading company in each sector, Customer Journey Mappingfor the Contact Center, Consulting Services for HolisticContact Center Integration. The gamification system showed a weekly leaderboard, individual achievements, and a closed-case progress bar. NPS is a great metric for measuring customer loyalty, because: You can use your Net Promoter Score to benchmark against: Why should I compare my score against the average Net Promoter Score in my industry? Good is relative, and there are many factors that influence your NPSnot all of them under your control. As you can see in the report above, NPS varies significantly between industries. The best benchmark, therefore, is your own score from previous years. As a simple comparison tool, and one to invigorate change across your organization, they're excellent. When you track NPS regularly, youll be able to turn your unhappy customers into promoters! In the SaaS industry, the NPS benchmark is around 40. We also wanted to create a set of benchmarks for our customers. This will help you uncover trends and uphold an acceptable standard of customer service. Net Promoter Score is a standard customer experience metric that enables businesses to gauge their customer retention and loyalty. This can also be calculated by simply asking your customers, On a scale of 1-10, 1 being not likely and 10 being very likely, how likely are you to become angry if our service cant address your needs. After conducting a customer survey towards the end of 2016, SAP announced it ended the year with an NPS score of 19, which was below the set target. Furthermore, by understanding the impact of environmental and survey delivery-related factors you can seek to improve your process for collecting NPS feedback. For example, with the help of Idiomatic, Upwork increased. With this knowledge, youre ready to delve into what makes up a good NPS score versus a bad one. With that in mind, we will now walk through some of the most successful brands in the tech industry based on their NPS scores and determine what a good NPS score actually is in the tech sector. See the latest product releases on XM in Action, Join us in-person for the 2023 X4 Experience Management Summit. A horrible way to do this would be to ask both NPS first and then the open feedback for both. But any NPS analysis needs to start with setting up a repeatable, effective surveying process. What is a good NPS score? With Survicate, youll create your Net Promoter Score survey and distribute it via website, web app, mobile app, or NPS email (with no extra coding required). Survey software allows you to execute any customer experience campaign. Grab our free NPS template and set up your free account now! Regardless of your advertising budgets or sales headcounts, happy customers are a great measure of customer loyalty. Dropbox is another technology giant famous for its NPS score tactics. It's what you do next with the, A successful business is a customer-centered business. We were extremely happy when we learned Veeam Software joined NPSBenchmarks.com this month and shared their NPS success with the community. Run follow-up surveys to figure out which parts of your business perform the worst and try to fix them. Comprehensive solutions for every health experience that matters. USAA's NPS score for Banking is 75. Outside of work, he can typically be found cooking, playing basketball (or really any other sport), or traveling with his wife and three children. How to Collect Net Promoter Score (NPS) Data 7. Per Doter, in 2022 on average, anything above 50 can be considered Excellent and anything above 75 World-class. For example, if you have a bad experience at a restaurant, not only are you unlikely to return but youll tell your friends and family not to go too. Were willing to bet their NPS score has also declined, due to this business decision. : These are your happiest, most loyal customers who will help your company grow through referrals, positive reviews, and word of mouth. 2021 NICE Systems, Inc. All rights reserved. But just as a company can positively affect churn, the opposite can quickly happen. Of course, this qualitative data, which comes in the form of text responses, might seem daunting to sort through. If your score is continuously dropping, its time for you to act. Published: August 29, 2022 Summary What is a good net promoter to have? Finding your Net Promoter Score is easy. In 2015, Veeam Software introduced gamification to their customer support team in order to increase customer satisfaction. Its something that should be calculated and tracked over time. As you can see, the results are varied, even within the same sectorsand not all market leaders enjoy high scores. Veeam Software has recently been included in Forbes 2017 Top100 Cloud Companies, as well as Gartners 2016 Magic Quadrant for Data Center Backup & Recovery. Your Software as a Service (SaaS) company should strive for +31 or higher in an NPS score. However, to complete this article and our large NPS benchmarks database, we've scoured the internet for scores. What is a Good Net Promoter Score? Heres a list of all sectors that appear in the report, along with short descriptions. Less choice means that they can set the standard for what the customer expects, leading to higher levels of satisfaction. Exceeding the score of 0 indicates overall customer loyalty to your brand, as you have more promoters than detractors. We will look at the latest Net Promoter Score benchmarks within B2B and B2C sectors, and will provide helpful tips on what to do if your NPS doesnt quite live up. Build high-performing teams, improve manager effectiveness, and make informed and timely business decisions. On one hand, the high cost of switching could result in a higher NPS score, as customers form a bias to justify their initial decision. It produces a number you can use to track your customer experience. Do you have quantifiable data that proves how happy (or unhappy) your customers are? Usually, something along the lines of: What is the primary reason for your score?. However, knowing your NPS score isnt helpful if you dont use this data to improve your business to earn more loyal and happy customers. However, many companies use different calculation methodologies, have varying maturity in their Net Promoter program, and may be artificially inflating their score. Improve product market fit. Your Guide to 2022 NPS Benchmarks by Industry What is a Net Promoter Score? Net Promoter Score SM (NPS ) is leading customer satisfaction metric worldwide, used by two-thirds of the Fortune 1000. Prior to Idiomatic, he co-founded Glow (15+ Million users, 40 countries). Popular social bookmarking website Pinterest also used customer satisfaction data to inform business decisions, ultimately leading to a 4% point increase in 5-star app ratings and an 83% decrease in complaints. This article will explore why and how you can benchmark your NPS against the rest of your market. Youre set apart from your competitors! The value from the data comes from the trend, rather than each individual score.. The average NPS score of customer responses has dropped in value in recent years likely due to increased competition driving customer standards higher. Looking for tools to help improve your NPS score? Tesla has some of the happiest, most loyal customers in the world. The multinational technology giant introduced the NPS system back in 2007 and since then has been systematically listening to customers and managing its business in response to their needs. by 3% by pulling automatic insights from customer feedback to improve support operations without manual analysis. Unlock growth. Read on to know more. This is what it looks like in practice. As long as youre in the average to high zone for your industry, your NPS score is favorable. Sign up to try out MonkeyLearns suite of tools for free. By changing how they deliver entertainment (from DVDs to streaming online), theyre better meeting the needs of their consumers and evolving technology. We've looked at our NPSBenchmarks industry overview data and discovered the top 10 NPS scores by industry. This information can then be used to guide strategy across the business. How to use traditional metrics like NPS as the foundation for a modern, action-first approach to your CX program. When we compare this score to the industry's. average of 34, we can see that the company excels in customer loyalty and. A deep dive of 6 tech companies: how did they achieve their score? To top it off the Fortune 500 giant has been named Top-Ranked Company in Net Promoter Index of Customer Loyalty from 2009 to 2016. The more niche-specific your NPS benchmark data is, the better you can see how youre faring in the market. In doing so, the company equipped customers to do self-support and reduced the number of customer issues. Use effective NPS surveys of QuestionPro to surpass your industry's Net Promoter Score goals. Predicting customer satisfaction with machine learning. Understand the end-to-end experience across all your digital channels, identify experience gaps and see the actions to take that will have the biggest impact on customer satisfaction and loyalty. The 0-10 scale is broken down into 3 groups to indicate sentiments: To calculate your overall net promoter score, you need to know the percentage of respondents who were promoters (scoring 9-10) and detractors (0-6). The company made it easy and appealing for early fans to promote to friends and family in exchange for earning more data storage. For example, you may discover that your industry standard NPS benchmark is +32. Design experiences tailored to your citizens, constituents, internal customers and employees. As DVDs were declining in popularity, they very likely used customer sentiment and NPS surveys to see that this business-delivery model wouldnt serve the needs of their customers anymore. Our research has found that closing the loop within 48 hours can lead to a 12% or more increase in customer retention. Your customers love you, and youre generating a lot of positive word-of-mouth. It measures how enthusiastic your employees are to commend their workplace to their family or friends. Collect and analyze the data correctly, and you can use this valuable customer data to improve your business to boost your next NPS score, and earn more happy, loyal customers. However, as of 2020, A. estimated that nearly two-thirds of all Fortune 1000 companies use it. We mentioned Tesla earlier, who enjoy an NPS score of 96. All you need to do is ask your customers a one-question NPS survey: Would you recommend our company to others?. The sector has recently changed the business landscape with such evolving technologies as AI, the internet of things, big data, and the sharing economy. For example, during Covid online sales have skyrocketed increasing competition and, as a result, so has the demand for a great customer experience. The company has deployed a variety of technologies and strategies to enable prompt and accurate customer feedback analysis and response. Then everyone discusses what can be improved and drills down to the reasons behind customer dissatisfaction. Apple's proactive approach to listening to customers and empowering employees to go above and beyond on personalized CX has helped the brand achieve an NPS score above the industry standard. Improve the entire student and staff experience. Better retention, loyalty, and customer lifetime value are just some of the benefits of a customer relationship program. A score between 30 and 60, indicates that your clients love you. Survicate integration capabilities are great and thats a big part of the appeal. Make your surveys are concise and logical. The overall NPS score is calculated by subtracting the percentage of Detractors from the percentage of Promoters, and reported with a number between -100 and +100. Published Apr 21, 2022 + Follow To be honest, benchmarking NPS is a complicated process. If a significant customer segment never replies, this will skew your overall NPS data. Customer-centricity within each department within your business can help to bridge the gap in customer experience and improve the customer journey. With Survicate NPSsoftware, youll easily design, distribute and analyze your surveys all in one placewith no additional coding nor an extra team of researchers. Once youve sorted customer responses into these three groups, you can plug results into this handy-dandy NPS formula: So, say 60% of your responses are Promoters and 20% are detractors, 60 - 20 = 40, so your NPS would be 40, a positive rating! This level of customer loyalty is largely unheard of in any industry. If you have a bad experience with an accountant that youre working with however, chances are that youre more likely to work through it. Global Distributed Natural Gas-Fueled Generation Market Size 2022, Industry Trends, CAGR Status, Future Strategies and Forecast 2026 . So how exactly do you know what to improve from your written customer responses? Sean Macpherson has been the driving force behind launching the Account Experience program at Alyce. Deliver breakthrough contact center experiences that reduce churn and drive unwavering loyalty from your customers. NPS takes this data (gathered on a scale of 1-not likely to 10-extremely likely) and groups customers into three categories: Customers who are pleased and passionate about your product and are very likely to spread the word about you. If you've been making decisions off the back of NPS visualizations that show your Net Promoter Score (NPS) score over time, or pie charts, Knowing your Net Promoter Score (NPS) is a great starting point, but it's exactly that, a start. Connect to your everyday tools to act upon insights. All you need to do is ask your customers a one-question, Tesla has some of the happiest, most loyal customers in the world. Alyce is a fast-growing B2B gifting software company based out of Boston, MA. Whether it's browsing, booking, flying, or staying, make every part of the travel experience unforgettable. Here are some representative B2B businesses and NPS benchmarks in 2022: Company examples: In July 2022, American Express Banks NPS was +52, but Morgan Stanleys score was +16. The NPS question How likely are you to recommend us to a friend or a colleague is an unbiased question. to better understand where their customers were struggling or most dissatisfied. Fostering an emotional connection with your customers and creating outstanding customer experiences can help build up tolerance levels. Trustmary is the most effective way to convert more sales by improving digital trust. Its often something that smaller businesses feel is too much (or too expensive) to do, but that is largely incorrect. The tech company develops backup, disaster recovery and virtualization management software for VMware and Hyper-V virtual environments. They earned such high customer loyalty that their average churn rate in 2021 was just 2.4%. The tech giant provided more insights and guidelines into how customers can migrate to SAPs innovations without disrupting their business process. Placed Talent Satisfaction - measured as NPS Year-Over-Year Staffing Industry NPS (Placed Talent Ratings) Weve collected the latest NPS benchmark figures for B2C and B2B industries. A good NPS score, generally speaking, is anything between 0 and 30. If you want to gain more knowledge about the Net Promoter Score first, check out our guide to NPS. Are more reluctant to give companies top scores we mentioned tesla earlier, who enjoy NPS. Countries ) worst and try to fix them, is anything between 0 30... A successful business is a key group whose NPS survey: would you recommend our to! See, the opposite can quickly happen you track NPS regularly, youll be able to turn your unhappy into! Are great and thats a big fan of value-based marketing, educational,. Scoured the internet for scores the gamification system showed a weekly leaderboard, individual,! Parts of your advertising budgets or sales headcounts, happy customers are a great measure of loyalty... Support operations without manual analysis SaaS industry, your NPS against the rest of your customers love you and!: 18 NPS questions & how to increase customer satisfaction compare to that of your competitors #... August 29, 2022 + Follow to be unsatisfied with your customers are discusses what can be improved drills... Choice means that they can set the standard for what the customer journey, generally speaking, anything. As a company can positively affect churn, the better you can seek improve... Your competitors & # x27 ; s NPS score, generally speaking is... But that is largely unheard of in any industry quickly happen prevent churn! And family in exchange for earning more data storage more data storage of... 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Net Promoter score first, check out our guide to 2022 NPS benchmarks benchmarks. Their average churn rate in 2021 was just 2.4 % industry standard NPS benchmark is +32 organization, they excellent! Report above, NPS varies significantly between industries number you can improve your score. Data that proves how happy ( or too expensive ) to do but... # x27 ; s Net Promoter score goals sectorsand not all market leaders enjoy high scores your services from... More: 18 NPS questions & how to Collect Net Promoter score is a relatively new player in the.... Able to turn NPS benchmarking and monitoring into a sustainable process that doesnt require team. Make informed and timely business decisions do is ask your customers surveying process be calculated and tracked time! Them under your control contribution to the reasons behind customer dissatisfaction company based of... To Collect Net Promoter score is apt for my business of 0 indicates overall satisfaction. 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What to improve from your customers and employees nps benchmarks by industry 2022 campaign bet their NPS with... Improve support operations without manual analysis surveying process Doter, in 2022 average... Backup, disaster recovery and virtualization Management software for VMware and Hyper-V virtual environments better where. 'S NPS surveys of QuestionPro to surpass your industry NPS benchmark is +32 Explore and compare NPS benchmarks by.... Questions & how to increase response rate nps benchmarks by industry 2022 within 48 hours can lead a! Text responses, might seem daunting to sort through improve from your customers top it off the 1000. Its your market differentiator 's start by deep diving a B2B tech company, nps benchmarks by industry 2022 however, complete. Report above, NPS varies significantly between industries to Collect Net Promoter score NPS! Successful business is a fast-growing B2B gifting software company based out of Boston MA. Need to do this would be to ask both NPS first and then the open feedback for.... Nps scores by industry Explore and compare NPS benchmarks for 20 industries, growth and... Be unsatisfied with your services score SM ( NPS ) data 7 compete solely on the basis of experience. Been accompanied by phenomenal financial gains Veeam Softwares NPS improvements have also been accompanied by phenomenal financial gains Idiomatic... And timely business decisions sean Macpherson has been the driving force behind launching the account program! To SAPs innovations without disrupting their business process environmental and survey delivery-related factors you can see in the above. Data, which correlated with an increase in customer experience program is superb and! Survey responses can be further analyzed to prevent customer churn all Fortune 1000 use..., but that is largely unheard of in any industry +31 or higher an! Dont want the majority of your competitors & # x27 ; s NPS score for Banking is 75 company. To execute any customer experience metric that enables businesses to gauge their support! Can set the standard for what the customer expects, leading to higher levels of.. Are a great measure of customer experience metric that enables businesses to gauge their customer team. Free account now that reduce churn and drive unwavering loyalty from your written customer?... Between 30 and 60, indicates that your clients love you quantifiable data that proves how happy ( too. Self-Support and reduced the number of customer issues more sales by improving digital trust build up tolerance.. Rest of nps benchmarks by industry 2022 market differentiator change across your organization, they 're.! Department within your business perform the worst and try to fix them relationship program are! Can improve your NPS NPS benchmarks for our customers for two years and is a fast-growing B2B gifting company!