Learn why The Net Promoter® Score is perhaps the best methodology to predict profitable brand growth and measure customer delight in this short overview 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?❞
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