Net Promoter® Score is a method to measure customer satisfaction. It is a very efficient way of realizing sustainable growth. The system was created in 2003, by Frederick Reichheld of Bain & Company, and it has been implemented with great success in large and small companies all over the world.
Customers are being asked a simple question: ‘How likely are you to recommend this company, brand, product or service to family, friends or colleagues?’ The answer must be given on a scale of 0 to 10.
Unhappy customers, who are not likely to purchase again, and who might spread negative word-of-mouth.
Satisfied customers, but they are not delighted. That makes them vulnerable to competitive offerings.
The loyal ones who will purchase more and who will refer others, thereby fueling growth.
The Net Promoter Score itself is but one aspect of the Net Promoter® System. The second question is an open ended question: ‘Why did you give us that score?’
The Net Promoter® System does not suggest any reason: it leaves it up to the customer to divulge what really matters. In that light, Net Promoter® Score is very different from the traditional customer satisfaction surveys, consisting of long lists of questions.
The Net Promoter® System is not a one-off operation. It is a dynamic and continuous process, whereby the company becomes focuses on an on-going and permanent improvement. In that way the score grows into an incentive for each department, a motivator for every collaborator, and a signpost for the C-level of a company.
The impact of the implementation of NPS in the company is enormous because it reaches into the core of the company’s management, implicating changes in customer experience as it goes along. Every improvement is translated into both the customer’s view on the changes and into company results.
Moreover, the work is never finished. Net Promoter® Score acts as a valve on customer experience, at once establishing customer centricity and leveraging better results on the bottom line.
The Net Promoter® System is not a research model as such. It is essentially an operational model that permeates into company culture.
It’s success is due to it’s ability to mobilize and energize teams and individuals using transparency as a powerful engine.
reliable compass to be used in management and in marketing,
For NPS to work, it has to be implemented in the whole company. Both in front and back office. In every single department.
Room for improvement