HOW LIKELY IS IT YOU WOULD RECOMMEND US TO A FRIEND OR COLLEAGUE?
0 1 2 3 4 5 6 7 8 9 10
% %NPS = = NET PROMOTER SCORE
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 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
Promoters are less price
Promoters increase their
purchases more rapidly than
Detractors complain more
frequently and therefore cause
expenses and use resources.
Promoters give free positive
advertisement through word of
mouth to their friends and
Promoters lead to a smaller churn
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
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
4) Monitor NPS by individual
employees and give star performers
-30% -10% 0% 20% 40%
2% HIGHER THAN
8% HIGHER THAN
SAME AS MARKET
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
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
THE ADVANCED LEVEL: eNPS
NPS feedback is
only useful if an
act on it! You