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.
NPS Improvement Statistics: Case Studies and Success Stories
Statistic 1. Business Telco provider used NPS process to increase orders by 150% [Tweet this stat]
Statistic 2. IT Product Supplier used NPS process and identified new opportunities in 39% of follow-up meetings [Tweet this stat]
Statistic 3. IT Vendor used NPS process and doubled growth rate in accounts that participated [Tweet this stat]
- Buying more products: $64million
- Reduction in churn: $116 million
- Word of mouth $103million
Statistic 5. 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]
Statistic 6. 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]
Statistic 8. 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]
Statistic 9 A&E Television shows strong link between NPS and Ratings
Statistic 10 Major Telco Link NPS to Churn
Statistic 11 Allianz Show High NPS => High Revenue Growth
Statistic 13 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]
Statistic 14 eBay Linked Revenue to NPS
Statistic 15 Shipping Increases with NPS at Maersk
“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]
Statistic 16. 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]
Statistic 18. 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]
Statistic 19. 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]
Statistic 20. Orange France has identified that NPS is highly correlated with churn propensity. [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.”
Statistic 22: 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.
Statistic 23: The Incremental Value of a Promoter
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.
Statistic 24: iiNet Directly Links NPS to Net Profit
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.
Statistic 25: What’s the value of driving customer satisfaction? – Promoters spend 2.5 times more than detractors. [Tweet this stat]
If you are thinking about implementing Net Promoter Score (NPS) in your organisation give us a call. We can help you to implement a best practice Net Promoter Score program for your business.
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 2009By Adam Ramshaw