Difference Between Measuring Your NPS vs. Using The Net Promoter System
| Genre | Customer Experience |
| Duration | 9 mins |
| Featuring | Rob Markey |
Takeaways
Once, Andy Taylor, the CEO of Enterprise, wanted to monitor his stores’ performance across the country. Instead of asking his customers to attempt a long survey, Enterprise requested its customers to answer two aspects. One is the quality of the rental experience, and the other is the probability of renting from Enterprise again.
Seeing this, Frederick F. Reichheld, a consultant with Bain & Co, realized the value of a simple data collection process and hence created a robust version of it, keeping customer loyalty as the key to success for any company.
Reichheld’s invention, Net Promoter Score,Ⓡ is a crucial measurement tool used by businesses of all sizes- from Fortune 500 leaders to small startups.
Measuring your NPS Score
Asking the ultimate question helps brands track their promoters and detractors. This delivers a crystal-clear measure of a business’s performance. To calculate your Net Promoter Score, subtract the percentage of detractors from the percentage of promoters. This gives you a number that you can analyze and track regularly. The metric can be adapted into any business, product, store, or customer support team.
The whole focus goes into the twin goals of creating more promoters and fewer detractors. To put quite simply, it is your customer balance sheet.
Using the Net Promoter System
The Net Promoter Score goes beyond a score & implores the reasons for the rating your customer gave. An unstructured, open-ended question helps your brand understand your customers on a deeper level.
The decision-makers get to hear the raw, unadulterated comments straight from the customers they are serving. This helps them incorporate valuable insight into the system and hence generate more promoters for the business and thus closing the loop.
Net Promoter System is all about inspiring your entire organization to be customer-centric, rather than chasing after short-term goals. Turn your brand into an icon & build products that your customers will absolutely love with Net Promoter System.
Rob Markey
With major experience in direct marketing, new customer acquisition, and cost reduction for clients in the retail banking, credit card, and insurance businesses, Rob Markey is no stranger to the world's largest companies. He is the founder of Bain’s Customer Strategy & Marketing Practice as well as the global leader of their Net Promoter System.
He considers it his mission to make customer value the most important measure of business success and shareholder value and works with business leaders to achieve the same. Rob Markey leads the NPS Loyalty Forum, a group of approximately 35 senior executives from loyalty-leading companies around the world.
