Key to Net Promoter Score - NPS


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This infographics gives you the key to Net Promoter Score - NPS.
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Key to Net Promoter Score - NPS

  1. 1. THE ULTIMATE CUSTOMER SATISFACTION QUESTION! HOW LIKELY IS IT YOU WOULD RECOMMEND US TO A FRIEND OR COLLEAGUE? 0 1 2 3 4 5 6 7 8 9 10 NOTATALL LIKELY EXTREMELY LIKELY % %NPS = = NET PROMOTER SCORE BAD PROFITS Bad profits are any profits made on the expense of customer relationships. For accountants any profit is good profit, but in customer world it is not like that. If customer feels misled, ignored, mistreated or some other way abused for example through punitive pricing or penalty charges, those are bad profits. GOOD PROFITS Good profits are earned with customer’s cooperation. If you provided your service so well that customers happily pay for it and come back for more, then you are earning good profits. These profits are gained through meeting the customer needs in an easy and enjoyable way. Customer loyalty is the key to profitable growth. INCREASE GOOD PROFITSGET RID OF BAD PROFITS WHYNPS?  Promoters are less price sensitive.  Promoters increase their purchases more rapidly than detractors.  Detractors complain more frequently and therefore cause expenses and use resources.  Promoters give free positive advertisement through word of mouth to their friends and colleagues.  Promoters lead to a smaller churn rates. HOW NET PROMOTER SCORE WORKS? Promoters speak positively about the business to friends and colleagues. They are far more likely than others to remain customers and to increase their purchases over time. Moreover, they account for more than 80% of referrals in most businesses. They are, in general, pleasant for employees to deal with. Promoters generate good profits. This group of customers are passives, because they are satisfied only temporarily. Their repurchase and referral rates are as much as 50% lower than those of promoters. Their referrals are likely to be qualified. Most importantly: if a competitor’s ad catches their eye, they may defect. Detractors are unhappy customers. They account for more than 80% of negative word-of-mouth. They have high rates of churn and defection. Some of them may appear profitable from an accounting standpoint, but their criticisms and bad attitudes diminish an organization’s reputation, discourage new customers and demotivate employees. GROWTH EFFECT OF NPS KEYS TO NPS SUCCESS 1) Get senior management support, 2) Connect NPS score to key decision processes and IT systems, and 3) Think of it as a organizational culture change journey instead of a one-off project. 4) Monitor NPS by individual employees and give star performers recognition. -30% -10% 0% 20% 40% MIDDLE CLASS COMPANY GROWTH 2% HIGHER THAN MARKET GROWTH BEST IN CLASS COMPANY GROWTH 8% HIGHER THAN MARKET GROWTH WORST IN CLASS COMPANY GROWTH SAME AS MARKET GROWTH Company NPS Market Average NPS NPS Range NPS When all of your customers give 9 or 10 out 10, you've become one of the world's greatest service companies. BENEFITS OF NPS RETENTION RATE WORD OF MOUTH COSTSANNUAL SPEND You can't create loyal customers without first creating loyal employees. Use employee NPS also known as eNPS to measure: “How likely is it that you would recommend this company as a place to work?” and then make your own employees promoters! THE ADVANCED LEVEL: eNPS In customer loyalty actions speak louder than words! NPS feedback is only useful if an organization can act on it! You need proper process, change and technology management to make it happen. NPS leaders achieve market share gains! Doyouwantyourorganisationalculturetobecomemorecustomercentric? /in/janneohtonen