When was net promoter score created

Now take into account how they feel about your advertising, their shopping experience, communication, etc? Lastly, try to combine all those thoughts together into one emotion. NPS, on the other hand, puts a quantifiable number on the very qualitative feelings of your customers.

By calculating NPS you have access to emotionally driven consumer data that is easier understand, compare, and analyze. Having a user feedback solution, such as Usabilla, installed on your online channels allows you to determine the NPS for your brand or business by asking your users directly. For example, an NPS question at the end of the checkout experience will probably receive higher scores.

Where are they expecting to hear from you? Where are they most likely to respond? Learn how to chose the best customer feedback channel for your customer base. Selecting a different region will change the language and content of inmoment. Measure and improve customer loyalty with Net Promoter Score. What is Net Promoter Score?

The right one will effectively divide customers into practical groups deserving different attention and organizational responses. It must be intuitive to customers when they assign grades and to employees and partners responsible for interpreting the results and taking action.

Ideally, the scale would be so easy to understand that even outsiders, such as investors, regulators, and journalists, would grasp the basic messages without needing a handbook and a statistical abstract.

And not only did clustering customers into three categories—promoters, the passively satisfied, and detractors—turn out to provide the simplest, most intuitive, and best predictor of customer behavior; it also made sense to frontline managers, who could relate to the goal of increasing the number of promoters and reducing the number of detractors more readily than increasing the mean of their satisfaction index by one standard deviation.

But the real test would be how well this approach explained relative growth rates for all competitors in an industry—and across a broader range of industry sectors.

The results were striking. Remarkably, this one simple statistic seemed to explain the relative growth rates across the entire industry; that is, no airline has found a way to increase growth without improving its ratio of promoters to detractors. That result was reflected, to a greater or lesser degree, in most of the industries we examined—including rental cars, where Enterprise enjoys both the highest rate of growth and the highest net-promoter percentage among its competitors.

In a few situations, it was simply irrelevant. Asking users of the system whether they would recommend the system to a friend or colleague seemed a little abstract, as they had no choice in the matter. For example, in the local telephone and cable TV businesses, population growth and economic expansion in the region determine growth rates, not how well customers are treated by their suppliers.

And in certain cases, we found small niche companies that were growing faster than their net-promoter percentages would imply. But for most companies in most industries, getting customers enthusiastic enough to recommend a company appears to be crucial to growth.

Tracking net promoters—the percentage of customers who are promoters of a brand or company minus the percentage who are detractors—offers organizations a powerful way to measure and manage customer loyalty. So how can companies get started? Resist the urge to let survey questions multiply; more questions diminish response rates along with the reliability of your sample.

You need only one question to determine the status—promoter, passively satisfied, or detractor—of a customer. But such questions should be tailored to the three categories of customers. Learning how to turn a passively satisfied customer into a promoter requires a very different line of questioning from learning how to resolve the problems of a detractor. Calculate the percentage of customers who respond with nine or ten promoters and the percentage who respond with zero through six detractors.

Subtract the percentage of detractors from the percentage of promoters to arrive at your net-promoter score. Compare net-promoter scores from specific regions, branches, service or sales reps, and customer segments. This often reveals root causes of differences as well as best practices that can be shared.

What really counts, of course, is how your company compares with direct competitors. You can then determine how your company stacks up within your industry and whether your current net-promoter number is a competitive asset or a liability. Improve your score. For companies aiming to garner world-class loyalty—and the growth that comes with it—this should be the target. For years, market leader AOL aggressively focused on new customer acquisition.

Through those efforts, AOL more than offset a substantial number of defections. But the company paid much less attention to converting these new customers into intensely loyal promoters.

Today, AOL is struggling to grow. Defection rates exceeded , customers per month in Countering a damaged reputation requires a company to create tremendously appealing incentives that will persuade skeptical customers to give a product or service a try, and the incentives drive up already significant customer acquisition costs. Furthermore, detractors—and even customers who are only passively satisfied but not enthusiastically loyal—typically take a toll on employees and increase service costs.

Finally, every detractor represents a missed opportunity to add a promoter to the customer population, one more unpaid salesperson to market your product or service and generate growth. One of the main takeaways from our research is that companies can keep customer surveys simple.

The most basic surveys—employing the right questions—can allow companies to report timely data that are easy to act on. Good luck to the branch manager who tries to help an employee interpret a score resulting from a complex weighting algorithm based on feedback from anonymous customers, many of whom were surveyed before the employee had his current job.

Again, consider Enterprise Rent-A-Car. The initial effort yielded a long, unwieldy research questionnaire, one that included the pet questions of everyone involved in drafting the survey. It only captured average service quality on a regional basis—interesting, but useless, since managers needed to see scores for each individual branch to establish clear accountability.

Over time, the sample was expanded to provide this information. And the number of questions on the survey was sharply reduced; this simplified the collating of answers and allowed the company to post monthly branch-level results almost as soon as they were collected. The company then began examining the relationships between customer responses and actual purchases and referrals. This is when Enterprise learned the value of enthusiasts.

Everybody wins! Did they have a bad experience? Are they not achieving their desired outcomes? All segments, however, benefit from receiving responses to the feedback they so generously give you. So remember to acknowledge their effort with something as simple as a quick, personal thank you.

NPS is an ongoing effort that never really ends, and never should. Keeping your finger on the pulse of how your customers feel about you will become central to how you conduct your business — if you let it. Selecting a different region will change the language and content of inmoment. Subscribe to the Blog Newsletter. Back to Blog. His solution was a poll with just two questions: How would you rate the quality of your rental experience? How likely are you to rent from us again?

Leverage customer feedback and drive growth with a real-time approach to NPS. Measure and improve customer experience. Close Change Region Selecting a different region will change the language and content of inmoment.