Companies worth promoting

One of the easiest ways* to measure customer loyalty and word-of-mouth – good or bad – is Net Promoter Score (NPS). Customers are asked to rate how likely they would be to recommend a given company on a scale of 0 to 10, with 10 being most likely. The NPS is calculated by taking the percentage of customers who are “Promoters” (rating the company 9 or 10) less the percentage of “Detractors” (rating of 6 or lower). This is bowling, not golf – the higher the NPS, the better your company’s CX.

Satmetrix released its 2011 NPS benchmarking results. Here are a few highlights and lowlights:

  • JetBlue Airways (60%) and Southwest (59%) trounced the competition. In contrast, U.S. Airways came in at negative 12%.
  • CIGNA ranked last among major health insurers with an NPS of negative 24%. Yikes.
  • Verizon led ISPs with an NPS of 13%, evidence that none of the major players provides good CX.
  • Sony (46%) made the biggest jump in the high tech industry, gaining 12 points over last year, but is still way behind industry-leader Apple (72%).
  • Among retailers, Trader Joe’s (82%) and Costco (77%) were expected winners, while Rite Aid came in last with a meager 4%.

Of course, as Satmetrix points out, measuring NPS is merely the first step and “the big challenge for most companies is to figure out how to use customer feedback to drive improvements in their customer experience.” I wonder what Sony did right, what ISPs ought to be doing, and why customers hate Rite Aid.

Is your company worth promoting? Do your customers agree?

* NPS as a CX measure has its “Detractors” and I agree with the comments toward the end of this article, about how NPS is best used along with other questions and that a 0-10 scale is not ideal. (I often rant about surveys with too-many-point scales.)

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