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Net.

Promoter
®


Score.
❝THE ULTIMATE QUESTION❞
The Problems to be
Addressed
?How to predict
profitable brand

growth.
?How to measure
customer delight.
The Way We’re
Accustomed to
Predicting Brand
Growth
❝How satisfied are 

you with brand x?❞
This is the poorest predictor

of profitable brand growth because
“satisfied” customers just got what they
paid for and may not prefer the brand.
Enter…

Net Promoter® Score
Developed by customer loyalty guru, Fred Reichheld

He was seeking a better predictor of profitable brand growth

than existing customer satisfaction studies.
Best predictor of profitable brand growth

❝How likely are you to recommend brand x to a friend or colleague?❞
Brand ❝recommend-ability❞ is one step higher than

brand loyalty in the value equation…

…because a “loyalist” may not actually “prefer” a brand.
Widely adopted

Over two thirds of Fortune 1000 companies are now using NPS.
The
Question
NPS survey asks one question:

❝On a scale of 0 to 10, how likely are you to 

recommend us to a friend or colleague?❞
Optional question:

❝What is the primary reason for your score?❞
Goal: Create a Growth Engine

NPS gauges efficiency of growth engine.

NPS leaders outgrow their competitors by an

average of 2.5x.
Scoring Concepts
9 - 10: Promoters

Loyal enthusiasts who keep buying from a
company and urge their friends to do the same.
They will go out of their way to be a virtual
marketing arm of the company.
7 - 8: Passives (neutral)

Got what they paid for, nothing more. Passively
satisfied, but unenthusiastic, not loyal, and are
easily wooed by the competition.
0 - 6: Detractors

Unhappy customers trapped in a bad relationship.

Company must fix their issues, or if not
economically rational, don’t acquire these types of
customers in the first place.
Calculating
the NPS
NPS = % Promoters − % Detractors
What is a good NPS?
Average companies ~10
Top performers > 50
Software/app companies*

score in the 8 – 30 range
Computer/laptop/tablet companies

Typically score in the 25 – 72 range

Apple at 72*
*Source: Satmetrix Systems, Inc., Average Net Promoter Scores for US consumer sectors 2015
Example
❝On a scale of 0 to 10,
how likely are you to
recommend us to a
friend or colleague?❞
Example Results
0 =Not at all likely 5 = Neutral 10 = Extremely likely
0 1 2 3 4 5 6 7 8 9 10
12 23 24 45 35 56 25 122 150 395 302
NPS = ! − " = 40
40
23%
#PASSIVES
!PROMOTERS
59%
"DETRACTORS
19%
NPS
Users
Wrap Up
Just do it!
Tools like SurveyMonkey! automate the process
Set an initial benchmark and track your progress
Repeat regularly…
With new and existing customers
Act on the findings
Thank your biggest fans…
Promoters account for 80%-90% of referrals!
Ask them to act as references or give testimonial

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NPS Presentation

  • 2. The Problems to be Addressed ?How to predict profitable brand
 growth. ?How to measure customer delight.
  • 3. The Way We’re Accustomed to Predicting Brand Growth ❝How satisfied are 
 you with brand x?❞ This is the poorest predictor
 of profitable brand growth because “satisfied” customers just got what they paid for and may not prefer the brand.
  • 4. Enter…
 Net Promoter® Score Developed by customer loyalty guru, Fred Reichheld
 He was seeking a better predictor of profitable brand growth
 than existing customer satisfaction studies. Best predictor of profitable brand growth
 ❝How likely are you to recommend brand x to a friend or colleague?❞ Brand ❝recommend-ability❞ is one step higher than
 brand loyalty in the value equation…
 …because a “loyalist” may not actually “prefer” a brand. Widely adopted
 Over two thirds of Fortune 1000 companies are now using NPS.
  • 5. The Question NPS survey asks one question:
 ❝On a scale of 0 to 10, how likely are you to 
 recommend us to a friend or colleague?❞ Optional question:
 ❝What is the primary reason for your score?❞ Goal: Create a Growth Engine
 NPS gauges efficiency of growth engine.
 NPS leaders outgrow their competitors by an
 average of 2.5x.
  • 6. Scoring Concepts 9 - 10: Promoters
 Loyal enthusiasts who keep buying from a company and urge their friends to do the same. They will go out of their way to be a virtual marketing arm of the company. 7 - 8: Passives (neutral)
 Got what they paid for, nothing more. Passively satisfied, but unenthusiastic, not loyal, and are easily wooed by the competition. 0 - 6: Detractors
 Unhappy customers trapped in a bad relationship.
 Company must fix their issues, or if not economically rational, don’t acquire these types of customers in the first place.
  • 7. Calculating the NPS NPS = % Promoters − % Detractors What is a good NPS? Average companies ~10 Top performers > 50 Software/app companies*
 score in the 8 – 30 range Computer/laptop/tablet companies
 Typically score in the 25 – 72 range
 Apple at 72* *Source: Satmetrix Systems, Inc., Average Net Promoter Scores for US consumer sectors 2015
  • 8. Example ❝On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?❞
  • 9. Example Results 0 =Not at all likely 5 = Neutral 10 = Extremely likely 0 1 2 3 4 5 6 7 8 9 10 12 23 24 45 35 56 25 122 150 395 302 NPS = ! − " = 40 40 23% #PASSIVES !PROMOTERS 59% "DETRACTORS 19%
  • 11. Wrap Up Just do it! Tools like SurveyMonkey! automate the process Set an initial benchmark and track your progress Repeat regularly… With new and existing customers Act on the findings Thank your biggest fans… Promoters account for 80%-90% of referrals! Ask them to act as references or give testimonial