Economics of Net Promoter Score, 2017
Net Promoter® Score (NPS®) is a popular metric that companies use to analyze their customer experience efforts. But how does this metric actually relate to loyalty? To uncover the relationship between NPS and loyalty, we asked 10,000 U.S. consumers to give an NPS to 331 companies across 20 industries, and we then looked at how this score correlated with four key loyalty behaviors. Here are some highlights from this research:
- Compared to detractors, promoters are over four times more likely to repurchase from a company, over five times more likely to forgive a company if it makes a mistake, over seven times more likely to try new offerings from a company, and almost five times more likely to trust a company.
- We performed a detailed analysis of the loyalty data for promoters, passives, and detractors across 20 different industries: airlines, auto dealers, banks, computer and tablet makers, credit card issuers, fast food chains, health plans, hotels and rooms, insurance carriers, investment firms, parcel delivery services, rental car and transport agencies, retailers, software firms, streaming media services, supermarkets, TV and Internet service providers, TVs and appliance makers, utilities, and wireless carriers.
- Ultimately, if a company wants to benefit from using NPS as a key metric, it must focus on improving customer experience, not obsessing over the metric itself.
This report was originally published by Temkin Group prior to its acquisition by Qualtrics in October 2018. It has been reformatted, but no substantive changes have been made to the content.