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Presented by: Marybeth Alexander

Support Goddess/Director of Customer Happiness

& Melissa Langworthy

Training Phoenix, Ph.D.

What is NPS?

Example Question Calculating the NPS Score

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•  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

-100 100

Everyone is a detractor LLLLL LLLLL

Everyone is a promoter JJJJJ JJJJJ

0

Equal number of promoters and detractors JLJL

50

-50

Good

Excellent

NPS and Your Customers

The research behind NPS

2003

The Ultimate Question

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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

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

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.

Recomm

end  

Deserve

s  Loyalt

y  

Con3nu

e  Buying

 

Sets  Sta

ndard  f

or  Exce

llence  

Easy  to

 do  Bus

iness  W

ith  

Choose

 Again  fo

r  1st  Tim

e  

Offers  In

nova3v

e  Solu3o

ns  

Overall  

Sa3sfac

3on  

Figure  2.  Top  Ranking  Correlates  to  Customer  Behavior  

100%    

80%    

60%    

40%    

20%    

0%  

•  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

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Industry NPS Averages

2011 2006

The Sequel

Why use NPS?

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•  Simple •  Easy to use •  Great for quick feedback •  Used by many amazing companies •  Open source •  Flexible

Why use NPS?

•  Customer retention •  Higher margins •  Higher customer spending •  Better cost efficiency •  Greater word of mouth •  Happier employees

But wait! There’s more!

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 Good Profits v. Bad Profits

$ $ $ $

$ $

$ $

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Two major tasks – Focus on customers and inspire

employees.

Managing your NPS Getting Started

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 NPS – 3 Essential Elements

Follow up with all responses, especially detractors, if you have the respondents contact information.

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•  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

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

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

•  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?

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NPS in SurveyGizmo

Question Type: Net Promoter Score

•  Predesigned SurveyGizmo question

– Single select, Likert Scale, options 0-10

NPS in SurveyGizmo

Question Type: Net Promoter Score

•  Customized reporting calculates NPS

NPS in SurveyGizmo NPS in SurveyGizmo

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Our Customer Service Survey About the Customer Hero

Likelihood to Refer Questions Other Follow up Questions

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Send Email Actions Summary Reports

Product Survey About the Product

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Likelihood to Refer Send Email Action

Product Survey: NPS Score Employee NPS Survey

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Likelihood to Refer Questions Employee NPS Survey

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

Thank you for watching!

Have questions or comments?

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