{"id":6119,"date":"2015-04-30T15:02:41","date_gmt":"2015-04-30T05:02:41","guid":{"rendered":"http:\/\/www.macquarietelecom.com\/?p=6119"},"modified":"2023-03-01T16:39:07","modified_gmt":"2023-03-01T05:39:07","slug":"what-is-a-good-net-promoter-score-nps","status":"publish","type":"post","link":"https:\/\/macquarietechnologygroup.com\/news\/what-is-a-good-net-promoter-score-nps\/","title":{"rendered":"What is NPS? Macquarie’s Customer Experience Journey & How NPS Changed Us"},"content":{"rendered":"

Over the past twelve months, I have written several articles about the Net Promoter Score<\/a> (NPS) and its impact on improving Macquarie Telecom\u2019s customer service journey.<\/p>\n

As mentioned in one of my earlier posts, our NPS journey started when I was reading the ground-breaking article \u201cThe Ultimate Question\u201d by Fred Reichheld, published in the Harvard Business Review,<\/em> that I stumbled across on a plane back to Sydney, Australia in 2003.<\/p>\n

Like most companies, Macquarie had been doing annual customer surveys forever with the number of questions topping 50! The question the Net Promoter Score hinges on, \u201cHow likely is it that you would recommend our company to a friend or colleague?\u201d just became another question in our extensive annual survey.<\/p>\n

While we were intrigued with the simplicity of the NPS, we began only by adopting what we felt comfortable with. We received our just rewards \u2013 nothing. That\u2019s when we decided to embrace NPS scores<\/a> completely, even the parts we found uncomfortable \u2013 but we\u2019ll get to our results a little bit later.<\/p>\n

First\u2026.<\/p>\n

What is a Net Promoter Score?<\/strong><\/h2>\n

Net Promoter Score (NPS)<\/strong> is a loyalty metric developed by Fred Reichheld, Bain & Company and Satmetrix,\u00a0used to measure the most important asset a company has \u2013 its customers. Put simply, a company asks its customers one question: Using a 0-10 scale, \u201cHow likely is it that you would recommend our company to your friends or colleagues?\u201d.<\/p>\n

In fact, a NPS can offer insight into the health of a company. If the net profits are coming from unhappy customers, or detractors, the company is positioned in a much more tenuous position than if the profits were coming from satisfied customers, or promoters. By nature, detractors will take their business to another company when given the opportunity to do so.<\/p>\n

Building trusting relationships with customers can be a long process, depending on the type of industry your company competes in. Companies that hold monopoly positions in an industry should pay special attention to Net Promoter Scores. A negative NPS could hinder a company from growing into other markets where it might not have a monopoly and, over time, it could lose the ability to compete on its merits with other companies in the same industry.<\/p>\n

Placing customer service on the back burner can manifest side effects in many other areas of your company, as well. A large base of unhappy customers can also lead to a demotivated workforce. Employees at companies with low Net Promoter Scores often lose interest in innovating and might even begin to feel poorly about how shabbily the company is treating its employees, ultimately leading to a sense of apathy toward their position at the company.<\/p>\n

Not to mention that, in today\u2019s tech saturated world, one negative voice can be magnified across social media networks. A general rule of thumb is that it takes five positive referrals to make up for the loss generated by one negative comment (Engaged Marketing Australia, 2016).<\/p>\n

 <\/p>\n

Watch the ‘What is NPS’ video produced by Macquarie Technology Group.<\/h2>\n