Net Promoter SystemThe Ultimate Question

What is NPS(Net Promoter Score)

Asking the Right Question The ultimate question.

• “On a scale from 0 to 10 how likely is it that you would recommend Company X to a friend or colleague?”

Follow up question.• “What is the primary reason for the score

you gave us?”

Calculating a Net Promoter Score

Composition of the Score

Detractors20%

Passive40%

Promoter40%

Customer Base

(40% Promoters) - (20% Detractors) = NPS 20%

Why Use NPS Bad Profits Sustainable profits Support a customer centered

business• Measure Experience

Create value for your business• Loyalty• Word of mouth

Closing the Loop Follow up with detractors.

• NPS reveals which customers may need to be contacted. Apple attempts to follow up with each detractor

within 24 hours. Verizon also follows up with detractors.

Implement strategies based on solid data from customers.

Counsel staff on how to better handle customer issues.

The Purpose“NPS ultimately is a business philosophy, a system of operational practices, and a leadership commitment, not just another way to measure customer satisfaction.”

Fred Reichheld

NPS Benchmarks

NPS Bench Marks Dillards = 75% Nordstrom = 75% Costco = 78%

Approach Bottom Up vs. Top Down

• Bottom up surveying gathers data from customers at a transactional level, providing an ongoing NPS used for operational purposes.

Top Down• A survey is sent to a designated group of

customers to produce a one time NPS which is used for comparison and strategic investment.

Suggested Approach Bottom Up

• Present survey containing the ultimate question to customers after they have made a purchase. Approach customers in person and ask for their

participation in a short survey. Attempt to reach a statistically significant

sample size. JML total foot fall during a week?

Suggested Approach Cont’d

Bottom Up Survey• Send out survey to “Friends of Jax” to

gather loyalty information and a big picture perspective of where the company stands with customer loyalty.

The Survey design for Jax

Project Requests 30% of my scheduled time toward

this project.• Survey preparation• Gathering data, surveying customers• Analyze and organize responses

Support and collaboration from store manager and assistant store manager.• Provide feedback and guidance throughout

the project.

Questions

Thank You