NPS and their use in Apple

1. NPS-NET
PROMOTOR
SCORE
BY - N I R A J K U M A R

2. NET PROMOTER SCORE
• NPS is based on the fundamental premise that every company’s customers can be
divided into three distinct categories:
• Net Promoter Score is a customer loyalty metric developed by (and a registered
trademark of) Fred Reichheld, Bain & Company, and Satmetrix.
DetractorPassivesPromoters

3. • Promoters • (Score 9 – 10 ) are loyal
enthusiasts who will keep
buying and refer others
fueling growth for your
company
• Passives
• Detractor

4. • Promoters • (Score 7 – 8 ) are satisfied
customers but
unenthusiastic and are
vulnerable to competitive
offerings.
• Passives
• Detractor

5. • Promoters • (Score 0 – 6 ) are unhappy
customers who can
damage your brand and
impede your growth
through negative word of
mouth communication.
• Passives
• Detractor

6. NPS PROCESS

7. DATA COLLECTION

8. APPLE
• Introduction of their retail stores was to improve their
customer service rather than sell more products.
• This has allowed Apple to increase their NPS from 57 to 72
since 2007.
• Apple uses NPS to gauge how effectively each of their three-
hundred plus stores is performing, daily.
• Store managers personally call each detractor – someone who
gave a 6 or less on the NPS survey. Research showed that
each detractor who was successfully contacted could bring in
on average an additional $1,000 in business within a year.
• Via NPS, Apple has been able to change disgruntled
consumers into loyal customers. Apple has doubled revenue
over the past five years, from $108B to $215B.

9. WHY TO USE NPS
• Assess at which stage your organization is in this growth process
• NPS is used by many large companies as a customer feedback
tool.
• NPS also gives a good indication of growth potential and customer
loyalty for a company or product.
• Benchmark different areas or products, or check where your
company positions itself versus the industry average if this is
available.
• Net Promoter Score can be used to motivate an organization to
become more focused on improving products and services for
customers

10. SOME CRITICAL REMARKS
• Customer loyalty and satisfaction is not only about
numbers and percentages, but also about causes,
consequences and correlations.
• NPS method cannot accurately measure customer
behavior.
• NPS is that it only takes into account customers, while
also a lot of non-customers can act as detractors and
generate bad word-of-mouth publicity.
• NPS disregards important differences in the answer score
distribution: no distinction is made between a 0 score
and a 6 score, while there is obviously a substantial
discrepancy between those two.

11. TOOLS

12. USER OF NPS

13. THANK YOU!