Net Promoter Score

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Slide Show from Net Promoter Score session at SurveyGizmo Training Events.

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Net Promoter Score

  1. 1. What is NPS?
  2. 2. Example Question
  3. 3. Calculating the NPS Score
  4. 4. • Promoters (9s and 10s) • Raving fans • Fuels growth • Likely to refer • Passives or Neutrals (7s and 8s) • Passively satisfied • Vulnerable to competition • Unlikely to refer • Detractors (0s – 6s) • Unhappy campers • Very unlikely to refer • Impedes growth Promoters, Passives, Detractors
  5. 5. -100 100 Everyone is a detractor   Everyone is a promoter   0 Equal number of promoters and detractors  5 0 -50 Good Excelle nt NPS and Your Customers
  6. 6. The research behind NPS
  7. 7. 2003 The Ultimate Question
  8. 8. Fred Reichheld, Bain & Company, and Satmetrix researched 4,000 customers on a variety of survey questions and actual customer behaviors like repeat purchases, recommendations to friends and colleagues, and retention. A Short History of NPS
  9. 9. In 11 out of 14 industry case studies, likelihood to recommend was the top question to predict actual customer behaviors. A Short History of NPS
  10. 10. Figure 2 illustrates the frequency with which each of the different loyalty questions emerged as the top correlate to actual behavior when testing these links across six different industries. Recommend Deserves Loyalty Continue Buying Sets Standard for Excellence Easy to do Business With Choose Again for 1 st Time Offers Innovative Solutions Overall Satisfaction Ranking Correlates to Customer Behavior 100% 80% 60% 40% 20% 0%
  11. 11. • To test NPS, Bain teams calculated the NPS of the major players in a number of industries and compared it to financial growth. • They found a strong correlation between Likelihood to Recommend (LTR) and financial growth. • On average, Net Promoter leaders grew at twice the rate of their competitors. Likelihood to Recommend
  12. 12. Industry NPS Averages
  13. 13. 20112006 The Sequel
  14. 14. Why use NPS?
  15. 15. • Simple • Easy to use • Great for quick feedback • Used by many amazing companies • Open source • Flexible Why use NPS?
  16. 16. • Customer retention • Higher margins • Higher customer spending • Better cost efficiency • Greater word of mouth • Happier employees But wait! There’s more!
  17. 17. What makes a good personal referral? They must believe that the company offers superior value in terms that an economist would understand – price, quality, function, ease of use, features. They must believe that the company knows and understands them, values them, listens to them, and shares their principles. Personal referrals
  18. 18. Good Profits v. Bad Profits $ $ $ $ $ $ $ $
  19. 19. Two major tasks – Focus on customers and inspire employees. Managing your NPS
  20. 20. Getting Started
  21. 21. 1. Companies must systematically categorize promoters and detractors in a timely, transparent fashion. 2. Companies must create closed-loop learning and improvement processes and build them into daily operations. 3. CEOs and other leaders must treat creating more promoters and fewer detractors as mission critical. NPS – 3 Essential Elements
  22. 22. NPS – 3 Essential Elements Follow up with all responses, especially detractors, if you have the respondents contact information.
  23. 23. • Top-down NPS (10-30 questions) – Conducted using a double-blind study – Compares major competitors across and industry – Used for relative performance and aggregate patterns • Bottom-up NPS (2-3 questions) – Sponsored by the company – Individual customer tracking – Transactional or Periodic (“Relationship”) Types of NPS Surveys
  24. 24. 1. Ask the Net Promoter question: On a scale of 0 to 10, how likely are you to recommend x to a friend or colleague? 2. Ask one simple follow up question: Why? 3. Follow up with all detractors within 24 hours.* *Depending on your customers, you may want to also ask for permission to follow up. Implementing Bottom-up NPS
  25. 25. 1. Ask qualifying questions. 2. Ask the Net Promoter question: On a scale of 0 to 10, how likely are you to recommend x to a friend or colleague? 3. Ask the follow up question: Why? 4. Ask additional questions about the product, service, or brand. 5. (Optional) Ask additional questions about the customers behaviors. 6. Ask any questions necessary for segmentation. Implementing Top-down NPS
  26. 26. • Easily understood – Grades in school – Metric System – Olympic Perfect “10” • I don’t give perfect scores • 1-10 can cause confusion – We’re #1! – Zero is always the lowest score – Pain scales and Apgar • Fewer points ignore differences in customer behavior • Lots of people use 0-10 Why use a 0 to 10 Scale?
  27. 27. NPS in SurveyGizmo
  28. 28. Question Type: Net Promoter Score • Predesigned SurveyGizmo question – Single select, Likert Scale, options 0-10 NPS in SurveyGizmo
  29. 29. Question Type: Net Promoter Score • Customized reporting calculates NPS NPS in SurveyGizmo
  30. 30. NPS in SurveyGizmo
  31. 31. Our Customer Service Survey
  32. 32. About the Customer Hero
  33. 33. Likelihood to Refer Questions
  34. 34. Other Follow up Questions
  35. 35. Send Email Actions
  36. 36. Summary Reports
  37. 37. Product Survey
  38. 38. About the Product
  39. 39. Likelihood to Refer
  40. 40. Send Email Action
  41. 41. Product Survey: NPS Score
  42. 42. Employee NPS Survey
  43. 43. Likelihood to Refer Questions
  44. 44. Employee NPS Survey
  45. 45. More ways we use NPS • Webinars and in person trainings • Professional Services projects • Usability Testing for the website and application • Management feedback surveys • Bottom-up relationship survey (in progress) • Top-down survey (soon…) Employee NPS Survey
  46. 46. Thank you for watching! Have questions or comments? Please share your feedback with us below!

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