The Net Promoter Score ® - The most popular way of measuring customer loyalty
The Net Promoter Score (NPS) is widely accepted as one of the best ways of measuring how satisfied customers are with the experience your company provides. NPS enables companies to track its Promoters and Detractors and it produces a clear account of an organization’s performance from the customer’s point of view. However, it is important to emphasize that NPS is a tracking tool and it does not provide any insights about how to develop more Promoters – it is what you do with the score that really matters.
NPS indicates how loyal customers are to your company and is in fact the only customer experience metric proven to be a reliable indicator of a company’s financial health and potential growth. According to Bain & Company, companies that achieve long-term growth score two times higher than average on NPS, while NPS leaders in general grow at twice the rate of competitors.
The beauty of NPS is its simplicity. It asks the ultimate question to customers:
“How likely is it that you would recommend [company/brand] to a friend or colleague?”
Customers respond by grading the question on a 0-10-point scale and are then divided into three distinct groups:
• Promoters (9-10): Loyal, enthusiastic customers who stay longer, buy more and help identify improvements and opportunities. They account for more than 80% of referrals in most businesses.
• Passives (7-8): Passively satisfied but are likely to defect when a better offer comes along.
• Detractors (0-6): Dissatisfied, unhappy customers. This group has high churn and defection rates, and while they may appear profitable on paper their negative attitudes and criticisms are very likely to lower your company’s reputation, discourage new customers, and demotivate employees.
NPS should be measured continuously to track how your CxM efforts fare with customers. The goal of CxM should be to increase the number of Promoters and to this end NPS is the perfect measure. Essentially, because Promoters are so great at attracting new customers, companies have much to gain by focusing on retention and cultivating loyalty instead of spending all their time, energy and resources on discount offers and marketing schemes.
How to measure the overall player experience using the Net Promotor Score
All the Players 1st surveys are designed in accordance with the Net Promoter Score. NPS is a strong performance indicator that enables clubs to evaluate touchpoints and service areas and to figure out where the player journey may be coming up short.
By combining the overall satisfaction score with the scores of each touchpoint or service area we can correlate the answers and explain exactly what to work on to improve the experience for the given player or player segment.
However, on its own NPS does not answer the question of WHY someone answered the way they did, such as what could have affected a player to give your greens a score of 6 or 7 on the NPS scale - that is for the player to know and for you to find out. Take the time to engage with the players and to listen to their feedback and they will no doubt tell you all about it.