The Net Promoter Score is one of the worlds most popular customer loyalty metrics. Find out why in this introduction to its benefits.

1. Net Promoter Score (NPS):
An Introduction to its benefits
It’s one of the worlds most popular customer loyalty metrics.
Loved by Apple, eBay, Sony, Zappos and thousands more.
Find out why.
a presentation by Devoted

2. Let’s recap: What is it?
The Net Promoter Score is a simple metric based around one question:
“On a scale of 0-10: How likely are you to recommend us to a friend or
colleague?”
The Net Promoter Score = %Promoters - %Detractors
The NPS is an absolute number which ranges from -100 (everyone is a detractor) to 100 (everyone is a
promoter).
According to most experts, a score of 30 is good. Whilst a score of 50 or more is excellent and a score of
70 is considered “world class”.
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3. Why use it?
Surveys are quick and simple for your customers
You can ask your customers for feedback by email
or on your website. Unlike lots of other surveys, Net
Promoter is based on just one question.
Which is it a lot more appealing for your customers.
With the Net Promoter Score you can expect higher
response rates.
Bain & Company (one of the companies behind NPS, along with Satmetrix) suggest that you can expect
response rates of between 40 - 60%.
Source: http://www.bain.com/publications/articles/creating-a-reliable-metric-loyalty-insights.aspx
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4. It’s a single metric that’s easy to understand
Your Net Promoter Score is just one absolute number.
It’s really straightforward which means that everyone in
your business can understand what the score means.
The NPS gives employees accountability. And
encourages improvements to the customer experience.
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5. Net Promoter Score lowers your churn rate
Detractors score 0-6 in the NPS survey. They are very likely to churn and account for 80% of negative word
of mouth.
Source: http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx
Customers who have a very high risk of churning aka
‘Detractors’ are easily identifiable with the Net Promoter
Score.
You can intervene. Solve their issues and improve their
experiences with your business. Detractors will become
less likely to leave and can even be converted into
Promoters.
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6. Positive word-of-mouth and lower marketing costs
Promoters account for more than 80 percent of
referrals in most businesses.
As your brand advocates, Promoters can help you
to gain new customers without having to spend lots
of money on marketing or advertising material.
Promoters score 9-10 in the NPS survey. They make repeat purchases and are very likely to recommend
you to others. 92% of people trust recommendations from family and friends over other marketing
methods.
Source: https://www.livechatinc.com/blog/what-is-net-promoter-score/
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7. Higher Revenue and Customer Lifetime Value (CLV)
The Net Promoter Score encourages you to focus on
improving the customer experience and creating more
Promoters.
Promoters are less price sensitive than other customers.
They spend more (so more revenue) and rarely need a
sale or discount to entice them to buy from you.
Source: http://www.bain.com/Images/LOYALTY_INSIGHTS_3_The_economics_of_loyalty.pdf
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8. Higher Revenue and Customer Lifetime Value…cont
Promoters are also far more likely to remain customers
and to increase their purchases over time, resulting in a
higher CLV.
Source:http://www.bain.com/Images/LOYALTY_INSIGHTS_3_The_economics_of_loyalty.pdf
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9. Want to see Net Promoter Score
Case Studies?
See how Allianz, American Express &
more achieved business growth with NPS.
Read NPS Case Studies
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10. Want to find out your Net Promoter
Score?
Send surveys for free with Devoted.
Visit devoted.io