The Net Promoter Score – The Ultimate Question for your Customers?
If you had to ask your customers one question to see how satisfied and loyal they were, what would it be? Well for more and more leading companies in the US and UK it is the Net Promoter Score (NSP), and now Leisure-net Solutions have become one of only a handful of companies in the UK certified to deliver NPS to its clients.
Net Promoter is a customer loyalty metric developed by (and a registered trademark of) Fred Reichheld, Bain & Company, and Satmetrix. It was introduced by Reichheld in his 2003 Harvard Business Review article "The One Number You Need to Grow"[1]. It main benefit is that it gives organisations a single customer service objective of creating more "Promoters" and fewer "Detractors" -- a concept far simpler for employees to understand and act on than more complicated, obscure or hard-to-understand satisfaction metrics or indices. In addition, proponents claim the Net Promoter method can reduce the complexity of implementation and analysis frequently associated with measures of customer satisfaction, providing a stable measure of business performance that can be compared across business units and even across industries.
Companies obtain their Net Promoter Score by asking customers a single question on a 0 to 10 rating scale: "How likely is it that you would recommend our company to a friend or colleague?" Based on their responses, customers can be categorized into one of three groups: Promoters (9-10 rating), Passives (7-8 rating), and Detractors (0-6 rating). The percentage of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter score. A score of 75% or above is considered quite high.
Leisure-net have become one of only 3 research consultancies in the UK to be Approved Partners for delivering NPS and have already established sector standards for leisure, health and fitness. Research carried out to date suggests that the sector’s average NPS is 34%, with a Promoter score of 54% and a Detractor score of 20%. The are now introducing it to all on their clients, using it to replace or complement longer more complicated traditional satisfaction surveys, and delivering it on line via email based surveys.
Steve Philpott from DC Leisure certainly thinks NPS has great potential in our sector.
"The sector needs powerful customer service matrices that can be benchmarked both internally and externally against other sectors, and we are very happy to be pioneers in embracing this powerful customer measure. As an ex-Marketeer I've been fascinated with Net Promoter Scores ever since I was introduced to them 2 or 3 years ago andI can't wait to start using them as the key metric in DC Leisure's customer KPIs."
Leisure-net will be introducing NPS to its clients over the next 12 months, and several of them will be using their NPS to give senior managers responsible for addressing problems raised by Detractors on an individual basis. For example by making Centre Managers responsible for replying to all those scoring 1 to 6, and then measuring them on what percentage of Detractors they can turn into Promoters by service recovery.
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