NPS or Net Promoter Score was introduced by Fred Reichheld 21 years ago in his Harvard Business Review article “The One Number You Need to Grow.” Since then elite companies have tracked their NPS scores, implemented the feedback they received into their systems, and used the NPS to take the “old school” word-of-mouth marketing to the next level. World-renowned companies like AT&T, Delta Airlines, Apple, Enterprise Rent-A-Car…the list goes on.. all use this important tool.
eAssist has jumped on the elite bandwagon and fully accepted that the Net Promoter Score is THE major metric successful businesses use to track growth and profits without sacrificing quality.
What does NPS mean?
So, what does all this mean? NPS is the key to a company’s growth by tracking how many people are loyal and promoting their service and brand image vs. how many people are detracting and publicly tarnishing their service and reputation. Ultimately who is winning the battle between good and bad?
To calculate the NPS you take the % of promoters (added together as a whole) and subtract them from the % of detractors (as a whole). It can range from -100 to 100 with 50 considered a good score.
Why should you care about NPS?
If you are a business owner, a stakeholder, or a leader within a growing business you should be investing in, implementing, tracking, and applying feedback received from your customers to improve your score and profitability. If your goal as a company is to improve the customer experience, retain customers, and increase the number of satisfied customers who become loyal brand advocates then you absolutely should care about NPS as a simple solution to the problem of loss of profits, loss of customers and a tainted brand image from failed service of brand promises.
NPS stats
I will leave you with some NPS stats:
1.) NPS leaders tend to grow at more than twice the rate of their competitors. Of the 9% of companies that have registered sustainable, profitable growth, NPS scores were, on average, 2.3 times the scores of other firms within their industry.
2.) Apple retail store managers called detractors or dissatisfied customers within 24 hours of an NPS survey submission. They tracked the purchase patterns of detractors who had spoken with store managers versus those who had not. They discovered that the former spent significantly more, resulting in more than $1,000 in additional revenue or $25 Million in the first year.
3.) Phillips Electronics tracked NPS for a sample of accounts over time and found that when the NPS increased revenue grew by 69%, but when it remained steady revenue grew only by 6%. When the NPS declined, revenue decreased by 24%.
Now you may realize why NPS is so important to us here at eAssist and why we encourage you to embrace this NPS journey and help us to gather this crucial feedback and grow our company to even greater success.
