What is the Net Promoter System, why you should use it, and best practices for implementing a sustainable program

1. Why Net Promoter Scoring?

3. 1. What is the NPS?
2. Who uses it?
3. Why should we use it?
4. Fundamentals
5. Loyalty > satisfaction
6. Good and bad profits
7. NPS Principles
8. How it’s really done

4. What is the Net Promoter Score?
• Measure of customer loyalty, not satisfaction

5. Net profits and net promoters
Just as you need to know the details
of revenues and costs to analyze
that most famous of bottom lines –
net profit – so too do you need
detailed data on promoters,
passives, and detractors in order to
understand your Net Promoter
Score.
- Frederick Reichheld, The Ultimate Question 2.0

7. The ultimate question asks:
Have we treated you right in a
manner worthy of your loyalty?
- Frederick Reichheld, The Ultimate Question 2.0

8. Why does it impact bottom line?
 Promoters drive good profits
 A loyal base is a bulwark against:
- market disruptions
- economic downturns

9. How does it work?
- The fundamentals -

10. The Fundamentals
1. Measure regularly and often
 Systematically categorize promoters,
passives, and detractors
 Transparently communicate results
 Continuous measurement

11. The Fundamentals
2. Use two closed-loop learning processes

12. The Fundamentals
3. Top-down, mission critical initiative
to increase promoters, decrease detractors

13. Summary: process, not a product
You follow the fundamentals:
1. Measure regularly and report
2. Close the loop
3. Mission critical, top-down initiative

14. What is the goal of measuring
1. Discover loyalty and the reasons for it
2. Create accountability across organization
3. To tell difference between good profits and
bad

15. 1. Measure Loyalty
A metric that measures loyalty is better than one
that measures satisfaction

16. 2. What gets measured creates accountability

17. 3. Good profits, bad profits
Bad profits are earned at the
expense of customers, good profits
are earned with customers’
enthusiastic cooperation.
- Frederick Reichheld, The Ultimate Question

18. Detractors drive bad profits
 They cut back on purchases
 Switch to competitors
 Spread negative message

19. Promoters drive good profits
 They happily return
 They spread positive message
 Encourage others to do business with you
 Join your marketing department – for free!

20. So, how do we do this thing?
Use Net Promoter Principles to turn
detractors into promoters and increase
good profits

21. Net Promoter Principles
1. Ask the ultimate question and little else
 How likely is it that you would recommend …
 What is the most important improvement we
could make that would make you more likely to
recommend us?

22. Net Promoter Principles
2. Choose a scale that works, stick with it

23. Net Promoter Principles
3. Aim for a high response rate from the
right customers -- the ones you care most
about
65%

24. Net Promoter Principles
(don’t forget about the non-responders)

25. Net Promoter Principles
4. Use transaction-based surveys
 Most information for least cost
 Less prone to bias than relationship surveys
 Use to improve the performance of front line
employees and supervisors

26. Net Promoter Principles
5. Report NPS data as often as possible.
Report quickly and learn

27. Net Promoter Principles
6. Go granular to learn faster and improve
accountability
• Segment customers
• Satisfaction with the transaction VS loyalty to or
happiness with company

28. Net Promoter Principles
7. Audit
• Prepare for PWC
• Ensure accuracy and freedom from bias.
• Bias happens. We can only mitigate it.
• Be consistent

29. What is next?
1. Draw up project plan
2. Stakeholder interviews (requirements)
3. Connect team brainstorm for
segmentation
4. Identify management team
5. Identify who’s accountable tactically
6. Marketing plan?
7. Other?

30. For more research-based insights
about our users, check out the UX
insights portal:
http://insights.redacted.com
Thoughts? Questions?