As I demonstrated in my February blog post, The One Metric That Determines An Organization’s Future Success, the Net Promoter Score (NPS) is a powerful tool for companies because it measures customer experience. It asks one question,
“How likely is it that you would recommend us to a friend or colleague?” [score from 1 to 10, with 10 being the best]
The advantage of NPS is, instead of measuring many variables, companies can simply measure one metric. Companies with a good NPS achieve more sales and profits. While companies internal NPS is not typically shared, research organizations have conducted and published external NPS surveys. Other organizations have evolved the concept of NPS to create their own customer experience rankings. Here are 3 companies that have used the concept of NPS to drive their success.
Enterprise Rental Car
Enterprise Rent-A-Car allows you to schedule an appointment not to just rent a car, but to be picked up at your preferred location. Enterprise uses a variation of NPS, called ESQi, which they implemented back in the 1990s. Interestingly, it was the use of ESQi that inspired the creation of NPS. ESQi asked two questions that are very similar to the NPS question.
- How would you rate your last Enterprise experience?
- Would you rent from Enterprise again?
Enterprise use ESQi in all their evaluations and will not promote location managers unless their ESQi scores are in the top 50%. Since implementing ESQi, Enterprise has become the largest rental car company in the United States leaving perennial powers Hertz and Avis in their dust. Enterprise’s revenue for 2016 was $21B, an increase of 48% over the past 5 years.
Apple was founded on having quality products that worked but they didn’t have a retail presence. One can compelling argue that the introduction of their retail stores was to improve their customer service rather than sell more products. Consumers could now schedule an appointment at the Genius bar to discuss their technology issues. This has allowed Apple to increase their NPS from 57 to 72 since 2007. Apple uses NPS to gauge how effectively each of their three-hundred plus stores is performing, daily. Store managers personally call each detractor – someone who gave a 6 or less on the NPS survey. Research showed that each detractor who was successfully contacted could bring in on average an additional $1,000 in business within a year. Via NPS, Apple has been able to change disgruntled consumers into loyal customers. Apple has doubled revenue over the past five years, from $108B to $215B.
USAA is an insurance holding company that was started by military veterans unable to get insurance from traditional carriers. They have been one of the top-performing companies in the NPS rankings for the past decade. Their 3 business groups; insurance, banking and credit cards all scored in the top 10 in a recent NPS Rankings. The company is holistically focused on the needs of the customer – both the current needs and anticipating the future needs. They drive innovation via their Innovation Community for Enterprise which encourages employees to submit ideas to improve the company. Last year, 94% of the employees submitted over 10,000 ideas and a record-breaking 1,206 initiatives were launched. USAA revenue for 2016 was $27B, a 42% increase over the past 5 years.
These companies were already customer-service oriented before the implementation of a NPS-metric and founded on servicing targeted markets; Enterprise (insurance claims rentals), Apple (non-corporate market) and USAA (military). As they expanded into new markets, the NPS metric and variations on the concept have helped maintain a quality customer experience.
Does your company use NPS or a variation? Does your company offer appointments? If so, let us know your thoughts in the comments.
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