Slide Show from Net Promoter Score session at SurveyGizmo Training Events.

2. What is NPS?

3. Example Question

4. Calculating the NPS Score

5. • Promoters (9s and 10s)
• Raving fans
• Fuels growth
• Likely to refer
• Passives or Neutrals (7s and 8s)
• Passively satisfied
• Vulnerable to competition
• Unlikely to refer
• Detractors (0s – 6s)
• Unhappy campers
• Very unlikely to refer
• Impedes growth
Promoters, Passives, Detractors

6. -100 100
Everyone
is a
detractor


Everyone
is a
promoter


0
Equal number of
promoters and
detractors

5
0
-50
Good
Excelle
nt
NPS and Your Customers

7. The research behind NPS

8. 2003
The Ultimate Question

9. Fred Reichheld, Bain & Company, and
Satmetrix researched 4,000 customers on
a variety of survey questions and actual
customer behaviors like repeat purchases,
recommendations to friends and
colleagues, and retention.
A Short History of NPS

10. In 11 out of 14 industry case studies,
likelihood to recommend was the top
question to predict actual customer
behaviors.
A Short History of NPS

11. Figure 2 illustrates the frequency with which
each of the different loyalty questions emerged
as the top correlate to actual behavior when
testing these links across six different industries.
Recommend
Deserves Loyalty
Continue Buying
Sets Standard for Excellence
Easy to do Business With
Choose Again for 1
st Time
Offers Innovative Solutions
Overall Satisfaction
Ranking Correlates to Customer Behavior
100%
80%
60%
40%
20%
0%

12. • To test NPS, Bain teams calculated the
NPS of the major players in a number of
industries and compared it to financial
growth.
• They found a strong correlation between
Likelihood to Recommend (LTR) and
financial growth.
• On average, Net Promoter leaders grew
at twice the rate of their competitors.
Likelihood to Recommend

13. Industry NPS Averages

14. 20112006
The Sequel

16. Why use NPS?

17. • Simple
• Easy to use
• Great for quick feedback
• Used by many amazing
companies
• Open source
• Flexible
Why use NPS?

18. • Customer retention
• Higher margins
• Higher customer spending
• Better cost efficiency
• Greater word of mouth
• Happier employees
But wait! There’s more!

19. What makes a good personal referral? They
must believe that the company offers
superior value in terms that an economist
would understand – price, quality, function,
ease of use, features. They must believe
that the company knows and understands
them, values them, listens to them, and
shares their principles.
Personal referrals

20. Good Profits v. Bad Profits
$ $
$ $
$
$
$
$

21. Two major tasks –
Focus on customers and
inspire employees.
Managing your NPS

22. Getting Started

23. 1. Companies must systematically categorize
promoters and detractors in a timely,
transparent fashion.
2. Companies must create closed-loop
learning and improvement processes and
build them into daily operations.
3. CEOs and other leaders must treat creating
more promoters and fewer detractors as
mission critical.
NPS – 3 Essential Elements

24. NPS – 3 Essential Elements
Follow up with all responses, especially
detractors, if you have the respondents
contact information.

25. • Top-down NPS (10-30 questions)
– Conducted using a double-blind study
– Compares major competitors across and
industry
– Used for relative performance and aggregate
patterns
• Bottom-up NPS (2-3 questions)
– Sponsored by the company
– Individual customer tracking
– Transactional or Periodic (“Relationship”)
Types of NPS Surveys

26. 1. Ask the Net Promoter question: On a
scale of 0 to 10, how likely are you to
recommend x to a friend or colleague?
2. Ask one simple follow up question: Why?
3. Follow up with all detractors within 24
hours.*
*Depending on your customers, you may want to also ask for
permission to follow up.
Implementing Bottom-up NPS

27. 1. Ask qualifying questions.
2. Ask the Net Promoter question: On a scale of 0 to
10, how likely are you to recommend x to a friend
or colleague?
3. Ask the follow up question: Why?
4. Ask additional questions about the product,
service, or brand.
5. (Optional) Ask additional questions about the
customers behaviors.
6. Ask any questions necessary for segmentation.
Implementing Top-down NPS

28. • Easily understood
– Grades in school
– Metric System
– Olympic Perfect “10”
• I don’t give perfect scores
• 1-10 can cause confusion
– We’re #1!
– Zero is always the lowest score
– Pain scales and Apgar
• Fewer points ignore differences in customer
behavior
• Lots of people use 0-10
Why use a 0 to 10 Scale?

29. NPS in SurveyGizmo

30. Question Type: Net Promoter Score
• Predesigned SurveyGizmo question
– Single select, Likert Scale, options 0-10
NPS in SurveyGizmo

31. Question Type: Net Promoter Score
• Customized reporting calculates NPS
NPS in SurveyGizmo

32. NPS in SurveyGizmo

33. Our Customer Service Survey

34. About the Customer Hero

35. Likelihood to Refer Questions

36. Other Follow up Questions

37. Send Email Actions

38. Summary Reports

39. Product Survey

40. About the Product

41. Likelihood to Refer

42. Send Email Action

43. Product Survey: NPS Score

44. Employee NPS Survey

45. Likelihood to Refer Questions

46. Employee NPS Survey

47. More ways we use NPS
• Webinars and in person trainings
• Professional Services projects
• Usability Testing for the website and
application
• Management feedback surveys
• Bottom-up relationship survey (in
progress)
• Top-down survey (soon…)
Employee NPS Survey

48. Thank you for watching!
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