The Must Know Number For Guest Loyalty
- The benefits of Net Promoter Score
- What is a Net Promoter Score?
- Where Net Promoter Score (NPS) came from
- How you can implement NPS
The benefits of Net Promoter Score
The benefits are growing in Occupancy, revenue and when you create the right system it can easily lead to an increase in organic direct bookings.
“The Advocacy Drives Growth” study published by the prestigious London School of Economics proves that an average NPS increase of 7% correlates on average with a 1 percent growth in revenue.
Studies by Sematrix, Bain and Company consistently show that companies who improve NPS outgrew competitors and organic growth.
What is Net Promoter Score?
Is a proven method for measuring customer advocacy and likelihood to recommend your business, it can be directly connected with revenue and organic growth.
By asking one question on a survey you then split the respondents down into 3 groups:
On a scale of 0 – 10 (10 being highly likely), how likely are you to recommended ‘hotel name’ to friends, family or colleagues?
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
The NPS score is the calculation of
Imagine we survey 100 people:
50 (50%) of them scored a 9 or 10
25 (25) of them scored 0 to 6
The NPS would 50% – 25% = NPS 25 (the actual NPS is never shown as a percentage despite the two previous numbers being percentage based)
Where Net Promoter Score (NPS) came from?
NPS was originally developed by (and is the registered trademark of) Bain and Company, Fred Reichheld, and Satmatrix systems
We first saw it launched by Reichheld in 2003, when he published it in an article called ‘One Number, You Need to Grow’ on Harvard business review.
Fortune 100 companies quickly adopted it and implemented it into their business.
Over the last decade, it has grown and grown in popularity because of its impact on improving a wide range of key performance indicators.
How can you implement NPS?
In the podcast, we discuss in great detail how you can implement NPS surveys into your business and most importantly how you can get all your staff involved. When done correctly employees buy-in to the metric and are excited about improving it.
Additionally in the PODCAST…
We talk about what a good and bad NPS score is.
How to change a detractor into a promoter
and much more
Would you like to know more about Net Promoter Score? How can it increase your revenue and how you can get one up and running easily?
Simply email [email protected] with the subject line ‘NPS Tell Me More’
In the Hotel News
Facebook Messenger Bots
One of Facebook’s newest features is creating a lot of noise because of its effectiveness in creating sales and improving customer service enquiries.
You can learn more about it HERE
If you would like any help implementing Facebook Messenger Bots into your business let us know simply email [email protected]
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