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Net Promoter Score

TMI and Net Promoter Score (NPS)

As part of the TMI 5Is approach, we recommend NPS as the metric of choice in determining how to have the highest impact on Customer Experience. Our approach is to engage organisations to improve their customers’ experience based upon real-time Voice of Customer information. Our NPS survey program will provide specifically targeted data that will enable organisations to understand how to proceed in creating customer value.

TMI Net Promoter Score Model

inspiration
  • Understand organisational objectives
  • Segment key areas
  • Clearly indentify outcomes and solutions
  • Create a specific NPS study
  • Identify the most effective method e.g. online, paper based, or via our specialised caller network by telephone
  • Generate  specific and meaningful reports
  • Create 30, 60 and 90-day action plans based upon recommendations

 

  • Promote action plans across the organisation
  • Introduce processes and behaviours to improve customer experience

 

How NPS is calculated

Customers are asked one ultimate question, “How likely is it that you would recommend this company to a friend?” Based on their response to this question customers are then divided into three groups.

  • 0-6 are Detractors These are customers that have generated sales but are actually bad for the company over the long term.
  • 7-8 are Passives These customers are generally positive about the company but are considered significantly less valuable than Promoters.
  • 9-10 are Promoters These customers drive business growth. The company has gone beyond satisfying their needs and truly delights them.

 

NSP Scale

The Net Promoter Score is created by calculating what percentage of a company’s customer base are Promoters and then subtracting the percentage who are Detractors. The customers who are Passives are neutral and are excluded from the equation. %Promoters -%Detractors = NPS.

NPS – See results from Net Promoter Fast Start Methodology in just 10 weeks

Only if a person feels really good about a supplier will they be prepared to recommend them.
For this to occur, TWO conditions must be satisfied:

  1. Engage the Customer’s Head - The Customer must feel that they are receiving superior value – price, features, quality and ease of use.
  2. Engage the Customer’s Heart - The Customer must feel committed to the relationship – must feel that the supplier understands them, values them, listens to them and acts accordingly.

Only when both sides of this equation are fulfilled will a Customer enthusiastically recommend a company to a friend. The Results... on average, a 12 point increase in NPS leads to a doubling in a company’s growth rate.

Base upon research from Bain and Co, it was fond that “in most industries the NPS leader outgrew its competition by a factor greater that two fold”

Net Promoter Score

Case Study – Orica Mining Servicespdf

Which Australian Companies have the best NPS?

Many of Australia’s leading companies have adopted Net Promoter Score as an important performance metric. It provides a simple, comparable measure of customer satisfaction and is a key indicator of future business growth.  The goal is NOT to have a high NPS – by itself it is not a sufficient condition for growth; it is only a measure of the quality of a company’s relationships with its customers. NPS is a useful tool for making decisions, innovating and doing what is necessary for growth.

Net Promoter Score Australia 2006 pdf

Reference Books:

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TMI Australia Pty Ltd :: T: +61 3 9602 3500 F: +61 3 9602 3533 :: Email
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