What is it?
Implementing The Net Promoter Score® is a key driver to build a customer focused organisationThe Douglas Collective
Net Promoter Score (NPS ®) is a strategic tool developed to measure loyalty towards companies and their brands. It can be loyalty from customers but can also be used with employees, decision makers, influencers and users of a service or a product. Sometimes it goes under the name "The Ultimate Question", because it's based upon 1 simple question:
"How likely would you be to recommend [company, product, service etc.] to a friend or a colleague?"
The respondents are divided into 3 segments based upon their response:
1. Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
2. Passives (score 7-8) we call this group "positively satisfied" - they are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
3. Detractors (score 0-6) are unhappy partners who can damage your brand and impede growth through negative word-of-mouth.
The Promoters of the brand is a highly important part of building a strong and trustworthy brand.
Net Promoter Score® is the difference between the proportion of Promoters and the proportion of Detractors in the customer base.
It may seem simple. But research clearly shows that recommendations, also called Word of Mouth Marketing, has a higher value than ever before. Most likely because of the massive growth of social media and the digital networks customers engage themselves in.
By using Net Promoter Score® your company can get access to information about the loyalty of your different stakeholders and use it to optimize values in a greater perspective.
The real strength of the Net Promoter Score® is it's capability to drive a organisational transformation into a more customer focused mindset.
Has it worked?
One of the world’s leading facility services companies ISS, has transformed from a product oriented to a customer focused company and NPS® was one of the drivers in that process. The NPS® has changed the focus from delivering a product output to focusing on customer purpose and value.
The Douglas Collective helped in the design and execution of the NPS® strategy.
Nestlé shared service centers (NGBS) has transformed from an organization focusing on Service Level Agreement and the delivery of transactions to an organization focusing on the End To End delivery - all for the benefit of the Nestlé customers. The Net Promoter Score® is a key driver in the change management process.
The Douglas Collective is actively working on the design, implementation and execution of the NPS® strategy.
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Further reading
If you're interested in digging deeper into the background of Net Promoter Score, we recommend you to visit Satmetrix for more detailed information.