Demonstrating the success of the Net Promoter Score methodology to skeptical senior management can sometimes be difficult. It is especially so if you are trying to prove it before your organisation has implemented any changes.
One way to prove the value of NPS® is to use external success stories and case studies to show what has been done by other organisations. Unfortunately, finding those case studies can be very difficult.
To try to overcome this issue, I have decided to create a list of case studies and references that are public domain. This blog post will be updated whenever I have new material.
This is an adjunct to my other source list post: Net Promoter Score Research: the “for” and “against” list
If you have results or a link to a published article, presentation or other source please use the comment box below to let me know and I’ll add it to this list so we can all benefit.
Macquarie Telecom Group
Macquarie Telecom Group are an Australia’s data centre, cloud, cyber security and telecom company for mid to large business and government customers. They have identifed that their customer retention and cross sell have increased while debtors have decreased as Net Promoter Score has improved.
Temkin Group Research (June ’16)
New research from Temkin indicates:
NPS was highly correlated to the likelihood of a customer to purchase more from a company (R = 0.81).
When compared with detractors: …
– promoters are more than five times as likely to repurchase from companies
-more than seven times as likely to forgive companies if they make a mistake
-almost nine times as likely to try new offerings from companies.
Business Telco Uses NPS To Increase Orders
IT Supplier Uses NPS to Find New Sales
IT Product Supplier used NPS process and identified new opportunities in 39% of follow-up meetings [Tweet this stat]
IT Vendor Doubles Growth Rate
IT Vendor used NPS process and doubled growth rate in accounts that participated [Tweet this stat]
Forrester Finds Customer Experience Drives Revenue
According to Forrester, Customer Experience affects the bottom line: Annual revenue change from a modest shift in customer experience for a $10 billion company [Tweet this stat]
- Buying more products: $64million
- Reduction in churn: $116 million
- Word of mouth $103million
Global Communications Business Increases Sales by 13%
Global Comms business identified the need to improve order processing that increased loyalty and improved margins. Increased sales by 13% in a single digit growth industry [Tweet this stat]
Global B2B Company Doubles Loyalty
A Global B2B has a quarterly review of results and action plans with Executive team, team leaders, sales leaders. Achieved 100%+ increase in loyalty, double digit growth in mature market [Tweet this stat]
Global Facilities Company Lifts Retention Rates 46%
According to Forrester, aGlobal Facilities company improved their retention rates by 46%, using the Net Promoter process. [Tweet this stat]
Cablecom Find Lifetime Value Linked to NPS
The image below shows a chart of Customer Lifetime Value Vs. NPS. If you review it you will see that the Promoters (9 or 10) make up 40% and Detractors (0-6) make up 24% of the highest value group. [Tweet this stat]
A&E Television shows strong link between NPS and Ratings
The chart below shows that Net Promoter Score and Ratings are mostly correlated for A&E Television shows. Low NPS drives Low Ratings, High NPS drives High ratings. [Tweet this stat]
Major Telco Links NPS to Churn
A major Telecom company was able to deliver a 25 point increase in NPS which lead to a 3% reduction in early life churn and a 5% increase in first call resolution. [Tweet this stat]
Optus (Telco) Links NPS to Customer Experience to Reduction in Churn
“Optus’ country chief officer Kevin Russell said that the carrier’s customer-focused initiatives were paying off, with a 50 per cent decline in the number of new complaints to industry ombudsman and a six points jump in its Net Promoter Score over the December quarter.
“This has put Optus’ benchmarks for customer experience into positive territory for the first time in a number of years,” Optus said in a statement.
“These customer experience improvements are reflected in a reduction in mobile postpaid retail churn to 1.4 per cent.”
Allianz Shows High NPS => High Revenue Growth
The chart below shows that Allianz operating units with a high NPS have a higher overall compound annual growth rate (CAGR) than those with lower overall NPS scores. [Tweet this stat]
Retailers link NPS to Store Sales
The chart below shows that in stores with a high NPS customers bought one or more product 20% more of the time than stores with a low Net Promoter Score [Tweet this stat]
Swiss Re Discovered that Promoters Pay More
Swiss Re found that there was a clear relationship between NPS and Long-Term Rate Adequacy. Strong Promoters (100) pay about 5% more than Passives (0) and 10% more than low Detractors (-100). [Tweet this stat]
eBay Linked NPS to Revenue
eBay found, see chart below, that the average GMB (revenue score) is consistently higher for Promoters than Detractors, across their 6 top markets. [Tweet this stat]
Maersk Link Shipping Increases with increases NPS
“Maersk correlated a 4 point increase in Net Promoter Scores with a 1% increase in additional volume shipped by customers”. Training improves Net Promoter Scores in local regions. “Maersk gave regional divisions the option of putting regional customer experience councils in place. The 55 regions that have set up local councils also received a three-day training course in customer experience improvement methods. The firm then did a study comparing regions with and without a council. The result: participating local offices score 10 points higher on their NPS than those offices that opted out”. [Tweet this stat]
Health Insurance Provider nib links NPS to attrition rates
For nib health funds is one of Australia’s leading and fastest growing health fund, The risk of attrition for Detractor respondents is 1.5 times that of Promoter respondents. Plus a one point increase in “Would Recommend” score results in a decreased of risk of termination by 7.8% [Tweet this stat]
Multi-industry NPS -> Revenue growth linkages
More statistics showing that NPS and Revenue Compound Annual Growth Rate ( CAGR) are linked. [Tweet this stat]
American Express Links Shareholder value to NPS
Amex says: “We track [NPS] all the way to shareholder value. For a promoter who is positive on American Express, we see a 10% to 15% increase in spending and four to five times increased retention, both of which drive shareholder value. In fact our operating expenses associated with service have gone down because we’re more streamlined, and we limit friction points and errors. [Tweet this stat]
Tech companies NPS linked to purchasing momentum
NPS links well to market share momentum for Tech Companies. Temkin Group recently surveyed 800 IT professionals from large companies. They asked the IT professionals how much their company was planning to spend in 2012 compared with 2011 and mapped this data with NPS and asked them a series of questions about tech vendors. The result is below. [Tweet this stat]
Full story: Net Promoter Score and Market Share For 60 Tech Vendors
Organge France (Telco) Links Churn to NPS
Orange France has identified that NPS is highly correlated with churn propensity. [Tweet this stat]
Full story: Orange France – Using NPS as a Lever for Organizational Change
Progressive Insurance Correlates Retention rate to NPS
Progressive Crop. has identified a solid correlation between NPS and insurance policy customer retention: [Tweet this stat]
“Three things that I want you to note from this overall segmentation. First, solid correlation between policy life expectancy and Net Promoter Score. So while we monitor, measure and act on Net Promoter Score and make investments to move that, we’re investing to improve our policy life expectancy.”
Source: The Progressive Corporation Investor Relations Meeting
Outsourcing Company links sales and revenue to NPS
Teletech reports that after NPS methodologies were implemented at one organisation…
NPS increased by 20 percent …
Furthermore, sales and revenue significantly increased. The chat sales conversion rate went up by more than 62 percent, while the amount of revenue generated for chat interactions went up by more than 51 percent.
Bain Calculates the Incremental Value of a Promoter — Multi-industry
This data from Bain in 2013 shows the incremental value of a Promoter over a Detractor for a variety of industries. You can see for example that you can more than quadruple the value of a customer in some businesses.
Telco iiNet Directly Links Net Profit to NPS
iiNet’s CEO Michael Malone states in this interview that a 1-point increase in their NPS equaled an A$1.6 million increase in net profit after tax [Tweet this stat].
He also explained that iiNet’s customer service team is its “heroes” and claims that a 0.1% improvement in customer churn added up to 20% recurring improvement in sales.
Heineken Links Revenue to NPS
What’s the value of driving customer satisfaction? – Promoters spend 2.5 times more than detractors. [Tweet this stat]
Source : http://www.syngro.com/knowledgebase/publications/case-studies/heineken-case-study/
Stora Enso (Pulp and Paper manufacturer, B2B)
Company focused on converting Detractors. In a direct comparison of the same group of customers, Stora Enso converted 77% of Detractors to Passives and Promoters.
These “converts” changed their purchasing behaviour as a result:
- Customers who remained Detractors—average sales fell 36%
- Customers who were converted to Passives—average sales increased by 16%
- Customers who were converted to Promoters—average sales increased by 25%
British Gas NPS Turn Around
British Gas’s NPS program delivered substantial returns.
Symantec Reduces Costs
Symantec implemented Net Promoter in the part of the business that develops and market “Norton” products. In the process they substantially lifted their Net Promoter score and delivered, amongst other benefits:
- Support achieved a 10-12% reduction in call times, plus agents now handle an average of 1.6 customers at a time.
- 30% reduction in support costs was reinvested in the customer experience, keeping overall budgets flat.
Source: Satmetrix Case Study
Links to Source Documents
Some of these documents may require you to have access to a specific site. We cannot help you gain access to those site(s), you must do so yourself.
(1) Satmetrix, Improving Net Promoter Scores in Business to Business Relationships Net Promoter Conference 2009
Filed Under: Case Studies and Statistics, Net Promoter ScoreTagged With: Net Promoter, Net Promoter Score, netpromoter, NPS, Success Stories
Many organizations that are new to Net Promoter Score® and are considering putting a program in place want to understand how such a simple question can lead to real business results. They want to know if promoters really help them grow and are loyal to the brand. There are countless reasons why listening to customers and improving based on their feedback is important, but when it gets down to it, does improving NPS lead to more repeat customers, more referrals, and overall growth? We’ve put together 4 case studies, from companies of different sizes and industries and their results with NPS.
NPS boosts American Express shareholder value
In 2005, American Express needed a customer service overhaul. When Jim Bush began as Managing Director he felt a more interactive conversation with customers would be a game changer, so he tested his hypothesis by transforming customer conversations with call center operatives from structured and often hurried experiences into relaxed and engaging experiences. While his competitors maintained their transaction-oriented customer service, Jim implemented conversational customer service and began to appraise service reps with NPS. Acting on the insights received from NPS led to increased revenue with increased customer spending and reduced customer churn.
In a 2012 interview with Fortune magazine, Bush noted that spending by promoters who are fiercely loyal to the American Express brand went up by 10–15% and customer retention increased four to five times. “We’ve been able to show that increased satisfaction drives increased engagement with American Express products, and that drives shareholder value. Great service is great business.” In 2012, American Express had an NPS of 43 and between 2012 and 2015 American Express grew their NPS by 16 points.
Airbnb connects higher NPS to more referrals and rebookings
Worldwide accommodations leader, Airbnb started using NPS towards the end of 2013. Airbnb wanted to see how Net Promoter Score could add value to their feedback program and establish if there really was a link between NPS score and the likelihood that the guest would return to book another stay, tell family and friends about the unique service, and resist attractive deals and offers from the competition.
The research involved feedback from 600,000 guests who booked a stay with Airbnb between January and April of 2014. Two-thirds of guests, who submitted feedback were promoters – over 300,000 of them awarded Airbnb a score of 10 and just 2% of guests were detractors.
Airbnb found that guests who were promoters were statistically more likely to both book another stay and refer a friend or family member (via their invite a friend feature). Interestingly they also discovered that while a guest may not have been satisfied with a particular stay, 26% were still promoters of Airbnb, reinforcing the need to go beyond just CSAT on a per transaction or booking level.
British Gas Services reports 30% growth per year
A few years ago, British Gas Services (BGS) had issues with its home heating installation unit. The leading gas supplier in the United Kingdom had the goal of making this business unit profitable as it was losing money. BGS introduced NPS and drove the process by instituting a thorough feedback process, which involved a daily NPS rating for each individual installer and sales adviser in all of its 75 districts. The results? Their NPS increased to 75 in just two years (from a baseline of an NPS of 45). In addition, customer complaints were reduced by 75%, bad debts went down more than 90%, profit margins improved greatly, and the service grew 30%. As of 2015 British Gas Services had an NPS of 70.
Temkin Group research on customer loyalty and NPS
In 2016 the Temkin Group published research that found a strong link between NPS and customer loyalty. After analyzing 291 companies in 20 industries such as – grocery, delivery services, health, finance, fast food, technology – the study established the long held value of NPS. The research showed that promoters are a business’ greatest asset and are:
- Likely to recommend an organization to at least 3.5 people
- 5 times more likely to purchase more goods or services
- 7 times more likely to forgive brands for errors
- 9 times more likely to try new product offers from businesses they love
NPS helps businesses make smart, informed decisions. However, as we’ve stated before, NPS is just a calculation of how you are doing today in the minds of customers. The key to NPS success starts with ensuring that everyone in your company has access to customer feedback, you implement processes to address customer feedback, and you continually close the loop with your customers to let them know how you have implemented their feedback.
Want to learn more? Attend our webinar or sign up for our free 14 day trial. Your NPS success story is just a click away!
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