The Net Promoter Score-method has quickly gained popularity as a powerful business tool, which in a simple, but effective way measures a company’s result and at the same time indicates what the future growth prospects are based on “the customer’s willingness to recommend their experience to others”.

Happy customers equates to a potential good future for the company.

Many Call Centres around the globe are using NPS as the indicator of the success of their call centre training.

How to measure NPS

NPS has recently swept aside all other customer satisfaction surveys by asking this simple question:” On a scale from 0-10 how likely is it that you will recommend us to your colleagues, friends and family?”

I. Customers answering with a 6 or lower are identified as detractors with a negative view of the service experience

II. Customers answering 9 or 10 are viewed as promoters and will recommend you

III. Customers answering 7 or 8 are viewed as loyal, but neutral as promoters; this group is important because they will either sink down to become detractors or with the best service experience will rise to become promoters.

The Net Promoter Score (NPS) is found by subtracting the number of detractors from the group of promoters.

The Score not only shows the current state of Customer Service, but as important can be used to predict future growth and profit for the company.

NPS has documented thanks to The London School of Economics research project and the creator of NPS Frederick Reichheld from Bain & Co, that there is a direct correlation between the Net Promotor Score and the company’s future growth potential.

It is no wonder that many Fortune 500 companies have now embraced the methodology and uses NPS - GE, Honeywell, Allianz, Charles Swab, Ebay, Citigroup, Philips, American Express and Danish Lego.  Dell computers uses its NPS to develop improvements in its customer engagement model.

Concurrently NPS has turned the spotlight on existing customer satisfaction measurements – a method which can’t be used to predict the growth potential of a company. Reichheld quotes satisfaction research showing that 60-80% of ex-customers giving ‘a satisfied or very satisfied’ rating just days before they quit and become ex-customers.  Most interesting here is the Harvard article – ‘Why Satisfied Customers Quit’, which shows that customer satisfaction has no relationship to loyalty.  It is delighted customers who are loyal, not satisfied ones.  And what do delighted customers do?  They spend more, come back and recommend us to others, which is what NPS measures.

Does your call centre training and standards of customer management attempt to delight the customer?

NPS is very popular amongst Senior Executives, perhaps due to its extremely simple form, and at the same time controversial amongst survey experts.

• Prosell offers a program that combines sales training and sales coaching.  It is based on recognised research, which tells us that training alone has limited impact and that when supported by skilful coaching, has 74% more chance of being implemented.
• Prosell has resources to deliver these programs across Australia, covering Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra.