The Net Promoter Score (NPS) is a powerful metric measuring advocacy to a brand. Positive NPS performance is linked to growth in market share, customer retention and brand promotion.
B2B companies with the most efficient growth engines operate at NPS efficiency ratings of 50 to 80. However, the average b2b brand has an NPS of 24, and B2B International’s databank of hundreds of b2b brands across the world shows that industry NPS’ range from 15 to 43. The strongest performing industries are fibers & fabrics, food & drink, and construction, where average NPS’ are over 40. The telecommunications, electronics and transport industries have work to do, where average NPS’ are below 20 for all industries.
The Net Value Score (NVS) is a proprietary metric developed by B2B International to measure perceived brand value. It is based on the correlation between perceived benefits and price, relative to other brands. Unlike the NPS which can only be derived from those who have used the brand, the NVS is applicable to both prospective and current users, as value perceptions drive new and existing business.
The NVS outputs also suggest required improvements—improving the customer value proposition, strengthening the communication of the benefits offered, or adjusting prices.
B2B companies with an NVS of over 40 (out of 100) are differentiating themselves on value, with scores over 60 considered outstanding (and most likely to drive significant market share gains).
Benchmarks for NPS & NVS
Brands in construction are also strong on the NVS (average of 46), suggesting that companies in this industry are better at communicating and/ or providing value, relative to other industries. Despite a strong NPS, the fibers & fabrics industry performs the worst on NVS with a score of 24, suggesting that brands could be recommended but that they are perceived as undifferentiated (and are therefore more likely to fall into the commodity trap).
Both NPS and NVS metrics should be included in the researcher’s toolkit. The outputs from these metrics allow for more informed decision-making which is crucial in building a market-leading position.
How does your brand perform on advocacy and brand value? And how strong is your performance relative to your competitors? Do you recognize cultural differences when assessing your performance?
If you would like more information on how to interpret your brand’s performance and how to benchmark your advocacy and brand value, please get in touch with one of our B2B brand experts.