net promoter score benchmarks for business cases
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Net Promoter Score® Business Case Benchmarks
Commercial in Confidence© Genroe (Australia) Pty Ltd. All Rights ReservedNet Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
How to Build a Rock Solid Net Promoter Business Case
• These benchmark values can be used to support your Net Promoter Business case.
• For the full Net Promoter Business Case methodology see this blog post:
How to Build a Rock Solid Net Promoter Business Case
• Here are some other resources you might find useful
– 7 Steps to Best Practice Net Promoter Score® Implementation
– Transactional Net Promoter Score®: Which is the best way to collect data?
– Transactional Vs Relationship Customer feedback: Are you using the right one?
– 6 Net Promoter® Best Practices You Can Use Today
– 5 More Best Practices for Net Promoter® Implementation
– How to Set Net Promoter® Targets for Your Organisation and Staff
– How To Drive Customer Experience Innovation Using Transactional NPS®
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Revenue From Promoters Buying More
• Bain & Company
– On average: Promoter Value = 2.6 x Detractor Value
– The range 1.3 - 4.6
– Source: Bain in 2013 (Accessed 5 November 2015)
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Revenue From Promoters Buying More
• CustomerGauge (NPS Software Supplier)
– Promoter Value = 3 x Detractor Value
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• Swiss Re
– Promoter Value = 1.16 x Detractor Value
– Promoter Value = 105%
– Neutral Value = 100%
– Detractor Value = 90%
Revenue From Promoters Buying More
• American Express
– “For a promoter who is positive on American Express, we see a 10% to 15% increase in spending and four to five times increased retention.”
– Promoter Value = 1.15 x Detractor Value
– Source: How can American Express help you?(Accessed 5 November 2015)
• Bain & Company
– Average Cross sell for Detractors is 25% less than Promoters
– Promoter Value = 1.2 x Detractor Value
– Source: “The Net Promoter® system: Linking loyalty to growth” February 2012 Rob Markey
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Revenue From Promoters Buying More
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• Heineken– Promoter Value = 2.46 x Detractor Value
– Source: Syngro Case Study(Accessed 5 November 2015)
Revenue From The Survey Effect
• 18% to 50% higher repurchase and cross sell rates
• Source: “A Critical Review of Question-BehaviorEffect Research” DHOLAKIA, 2009
• 50% reduction in defection rate
• A Critical Review of Question-Behavior Effect Research, DHOLAKIA, 2009
– “The results indicated that measuring purchase intentions increased the percent of respondents who purchased an automobile (control group: 2.4%; experimental group: 3.3%) and a personal computer (control group: 3.8%; experimental group: 4.48%) in the six months following the survey.”
• A Critical Review of Question-Behavior Effect Research, . DHOLAKIA, 2009
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There are number of studies that have validated the Survey Effect, also called the Mere Measurement Effect. Below are some references that you can use in your business case.
Revenue From Promoters Staying Longer
• nib Health Funds
– The risk of attrition for Detractor respondents is 1.5 times that of Promoter respondents
– Source: Genroe Case Study(Accessed 5 November 2015)
• American Express
– “For a promoter who is positive on American Express, we see a 10% to 15% increase in spending and four to five times increased retention.”
– Source: How can American Express help you?(Accessed 5 November 2015)
• Bain & Company
– Average Churn of a Detractor is 2 times that of a Promoter
– Source “The Net Promoter® system: Linking loyalty to growth” February 2012 Rob Markey
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Cost Reduction
• Symantec (Software)
– Support achieved a 10-12% reduction in call times
– 30% reduction in support costs
– Source: Symantec Case Study(Accessed 5 November 2015)
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Future NPS Value:How many Detractors can be moved to Promoters, or Neutrals
• Orange France
– 6 points in 8 months
• Voxeo
– 17 point lift in 12 months
– Source: Presentation by Amy Downs of Voxeo(Accessed November 2015)
• Virgin Media
– 18 point lift in 12 months
– Source: Case study about Virgin Media(Accessed 5 November 2015)
• The Home Depot
– 10 point lift in 12 months
– Source: Recent earnings call(Accessed 5 November 2015)
• Best Buy
– 3 point lift in 12 months
– Source: Forbes report(Accessed 5 November 2015)
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About Genroe
• Headquartered in Sydney, Australia, Genroe has been a driving force in helping companies better understand and generate higher value from their existing customers since 2002. Banks, insurance companies, IT companies and others used Genroe’s wide customer management services and tools to maximize customer profitability and revenue potential.
Our core deliverables are in the area of customer feedback management and customer experience management.
• Our Customer Experience Management Services
– Customer Experience Management implementation
– Customer Retention consulting
– Product and service bundling
– Customer Loyalty Program Health check
– Creating a customer centric culture
• Our Customer Feedback Management services
– Customer feedback Services
– Net Promoter Score Practice
– B2B Customer Feedback
– Lost sale feedback and action plan
• Customer Testimonials
To hear first-hand what our customers value most in our services you can review our extensive list of customer testimonials.
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Contact Genroe
• We run projects across Australia, New Zealand and South East Asia. Below are our contact details. Please feel free to contact us at any time.
Phone: 02 9191 4700 / +61 2 9191 4700
Email: [email protected]
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DAfter + (PromoterLift x PAfter) + (NeutralLift x NAfter)DBefore + (PromoterLift x PBefore) + (NeutralLift x NBefore)
Revenue Multiplier =
Program Value (or R) = Additional Gross Margin + Costs Saved
Additional Gross Margin = Additional Revenue x Margin Rate
Additional Revenue = Revenue From Promoters Buying More + Revenue From Promoters Staying LongerRevenue From The Survey Effect