Understanding Net Promoter Score

Net Promoter® Score was developed by loyalty expert Frederick Reichheld of Bain & Company and Satmetrix Systems through rigorous data analysis on a long-term basis. It is best known as a customer loyalty metric, but it is actually much more. It is a strong indicator of an organization's performance and growth. In research studies around the world, word of mouth is widely acknowledged as the most effective and trusted marketing channel. However, the reality is that few organizations know how to optimally leverage word of month for their brand.

You will experience the Net Promoter survey question during your use of the software installed within your organization. A survey will randomly pop up on your screen after logging into the system. It is very important you provide an answer to this survey question so that we, and Sage, can improve our processes to better serve you.

The Net Promoter Score (NPS) starts with the most important question you could ever ask your customers or constituents - "How likely is it that you would recommend Asyma Systems to a friend or colleague?" Participants answer on a scale between 0-10, and based on their response they are categorized into one of three groups: Detractors, Passively Satisfieds or Promoters.

The percentage of Promoters less Detractors yields the NPS score.

Promoters: Promoters are a result of an organization exceeding their customer's expectations and truly impressing them. This group of customers is likely to buy from you again, and will be less costly to serve. Asyma strives to be rated in this category and we are constantly looking for ways to improve our customer satisfation ultimately by first finding what technology and processes will better our clients successes.

Passively Satisfied: They occur as a result of merely satisfying customers. When customers are just satisfied they will stay with you only until a better offer comes along.

Detractors: Detractors are created when organizations don't even meet their customer's expectations. Detractors are less likely to buy from you again, typically cost more to serve and typically spread 80-90% of negative word of mouth.

The NPS question is based upon the premise that loyal, not satisfied, customers are the ones who drive profitable growth - growth that is based upon word of mouth advertising. As such net promoter offers actionable measures that tie directly to the economics of growth.

By understanding the voice of the customer and its categorizations, the NSP score can give structure for the development of growth-focused programs and incentives, as well as provide a benchmark for industry comparison. This approach, particularly when combined with driving questions based on any company's value proposition, provides guidance for the development of strategic, systematic actions at the staff, unit and company levels.

Do not be shocked if one of our consultants calls you up to see how everything is going and asks you what it is that we can do better for you!