How is the Net Promoter score calculated?

Transcription

1 How is the Net Promoter score calculated? Net Promoter is based on the question How likely would you be to recommend THIS hotel to someone else, if they were to require a hotel in this area in the future?. Consumers answer that question on a scale of 1 to 10. The Net Promoter score is calculated by taking the percentage of consumers who answered with a 9 or 10 (the promoters) and subtracting the percentage of customers who answered with a 0 through 6 (the detractors) Example: 150 surveys taken, 102 of those (80%) are promoters, 20 of them (13%) are detractors. The Formula would be 80% - 13% = NPS of 67.

2 FAQs

3 Why do we look at %9-10 instead of averages? The analysis of 9-10 s gives a clear understanding of which areas in the property have the most opportunity for improvement, it gives a better picture than average scores are able to, in a way that can be easily communicated down to front-line employees. It also gives a better understanding of the customers experience; those who gave scores of 9 or 10 experienced something that we want to repeat. Looking at %9-10 makes it easier for us to focus on the promoters and be aware of the size of this group of customers. We need to consider the approach we can take to make sure more of our customers are included in this top group.

4 Why are Promoters only assigned to 9s and 10s on the scale when Detractors get assigned to the bottom 1-6, shouldn t they be weighted equally? The explanation lies in the definition of each of the three customer segments Promoters: Giving scores of 9 or 10, these are our most loyal customers. They believe in the company, trust it is a good value, and have more interest in any new offers. Not only do they bring money by their own return visits, but they are also responsible for 80 to 90 % of positive referrals. Passives: Giving scores of 7 or 8, these guests may have been satisfied with their hotel stay, but were not overly impressed. Not only are they less inclined to tell others about their visit, but they will be quick to walk away when offered a better price by a competitor. Detractors: Giving scores of 6 or less, these guests are the worst thing that can happen to a property. They were unhappy with their stay, and they want everyone to know about it. Not only will they consume our resources by complaining to the property or to Customer Service, but they will also complain to others. Detractors are responsible for 80 to 90% of negative word-of-mouth.

5 Why is the Net Promoter score based on intent to recommend and not any other question? Research has shown that intent to recommend is the highest predictor of loyalty and future purchase. Recommendation is the highest standard because a customer is influencing friends and family with this answer. Since the NPS metric has become the most prominent measure of customer experience across industries it also gives us the ability to compare our scores with other players on the market.

6 It seems like my customers rate my property very high, yet give a low intent to recommend score which results in a low Net Promoter score, is Net Promoter really the best metric? A customer may give a high overall experience score but if the intent to recommend is low it tells us we did not offer a good enough experience worth spreading to others. In the same way, an overall experience score can be low, but it s when the intent to recommend score is low that this becomes alarming since customers are likely to spread bad word of mouth.

7 Why should I get penalized for low scores due to attributes which I cannot control? It is important that we capture the whole customer experience and not just a portion of it since we need to understand it from a customer point of view. If when we analyze the data we notice that scores across properties are brought down by elements such as pricing or booking/cancellation policy this is valuable information for our head office who will take action on it.

8 If a customer doesn t fill out the question, are we penalized or weighted differently? This cannot happen since the question is required in the survey, this means that the survey cannot be submitted unless the guest responds to this question.