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The Benefits of Net Promoter

The Benefits of Net Promoter

NPS is the most useful and practical method for gauging the attitudes and behaviors of customers.

Over the years, companies have developed many different methods for gauging the attitudes and behaviors of their customers. None of these methods is perfect; all are simply attempts to gather data that a company can use to improve its products and processes. We believe that Net Promoter, as both a specific metric and a full Net Promoter System, is the most useful and practical method. 

The Advantages of NPS

The Advantages of NPS

  • Linkage to financial outcomes. In Bain’s research, we have found no better metric when correlated with financial outcomes like customer lifetime value or revenue growth.
  • Simplicity. Net Promoter surveys typically require just two or three questions, keeping the burden on the customer low. Moreover, the key "likelihood to recommend" question is scored on a simple zero-to-ten scale. There are no complex indices or correlation coefficients. The Net Promoter Score is a single number that can be tracked from week to week and month to month, just like net profit. As with net profit, of course, a company’s Net Promoter Scores can be broken down however you wish—by business line, by store, by product, even by individual customer-service rep.
  • Ease of use. A company can conduct its Net Promoter surveys easily with hundreds of vendors providing NPS surveys in the broad Net Promoter ecosystem. It can compile and post scores quickly, providing up-to-the-minute scores and verbatim comments with employees and managers o that they can see the results of their performance in a timely fashion.
  • Quick follow-up. Thanks to the ease of use and high-velocity of feedback, NPS practitioners are able to quickly follow-up with customers after feedback is received to ensure they “close the loop” by identifying the customer’s concerns, and to fix the problem whenever possible. Frontline managers and senior leaders use NPS data and customer comments to inform decisions about process changes, new products and other innovations.
  • A growing body of experience. Thousands of companies in many different industries have begun to measure their Net Promoter Scores over the past decade. More important, a growing number of companies have adopted the full Net Promoter System. Among the early adopters are corporate trailblazers such as Apple, Enterprise Rent-A-Car, and Vanguard. These companies have developed successful systems based on Net Promoter principles but adapted to their own business. Many practitioners share their experiences and lessons learned through mechanisms such as The NPS Loyalty Forum.
  • Adaptability. As an open-source method—no high-priced vendors or "black box" statisticians required—NPS can easily be put to work in a wide variety of business settings. Apple, for example, uses it in its retail stores.

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