Leading research firm publishes new report, the Economics of Net Promoter, 2015
WABAN, Mass., June 16, 2015 /PRNewswire/ — Temkin Group released a new research report "Economics of Net Promoter, 2015" based on a study of 10,000 U.S. consumers.
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Net Promoter® Score (NPS®) has become a popular customer experience metric. NPS classifies customers into one of three categories—promoters, passives, and detractors—based on their likelihood to recommend the company to friends and colleagues. This research found a very high correlation between NPS and customer loyalty across 20 industries.
When compared with detractors, promoters (those who are the most likely to recommend) are five times as likely to repurchase from companies, almost six times as likely to forgive companies if they make a mistake, and almost eight times as likely to try new offerings from companies.
"Net Promoter Score identifies segments of customers who have distinctly different levels of loyalty, with promoters being the most loyal group by far," states Bruce Temkin, Managing Partner of Temkin Group.
Here are some additional findings from the research:
- The difference between the likelihood of promoters to repurchase from a company and detractors to repurchase from a company ranges from 78 percentage-points for computer & tablet makers down to 60 percentage-points for supermarkets.
- The difference between the likelihood of promoters to forgive a company and detractors to forgive a company ranges from 62 percentage-points for computer and tablet makers down to 46 percentage-points for airlines.
- The difference between promoters' appetite for new products and detractors' appetite for new products ranges from 59 percentage-points for rental car agencies down to 48 points for both banks and parcel delivery services.
- The difference between promoters' recommendation rate and detractors' recommendation rate ranges from 46 percentage-points for TV service providers down to 29 percentage-points for parcel delivery services.
The report includes loyalty levels for promoters, passives, and detractors across 20 industries: airlines, auto dealers, banks, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, major appliance makers, parcel delivery services, rental car agencies, retailers, software firms, TV service providers, utilities, and wireless carriers.
The report "Economics of Net Promoter, 2015" can be downloaded from the Customer Experience Matters blog, at ExperienceMatters.wordpress.com as well as from the Temkin Group website, www.TemkinGroup.com.
About Temkin Group: Temkin Group is widely recognized as a leading customer experience research and consulting firm. Many of the world's largest brands rely on its insights and advice to steer their transformational journeys. Temkin Group combines customer experience thought leadership with a deep understanding of the dynamics of organizations to help accelerate results. Rather than layering on cosmetic changes, Temkin Group helps companies embed practices within their culture by building four critical competencies: Purposeful Leadership, Employee Engagement, Compelling Brand Values, and Customer Connectedness. The firm's ongoing research identifies leading and emerging best practices across a wide range of activities for engaging the hearts and minds of customers, employees, and partners. For more information, contact Bruce Temkin at 617-916-2075 or send an Email.
About Bruce Temkin: Bruce Temkin is widely recognized as a customer experience thought leader and is Customer Experience Transformist and Managing Partner of Temkin Group. He is also the author of a very popular blog, Customer Experience Matters® (ExperienceMatters.wordpress.com). Prior to forming Temkin Group, he was a VP at Forrester Research for 12 years. Bruce is a highly demanded speaker who consistently receives high marks for his content-rich, entertaining keynote addresses. He is also the co-founder and Chair of the Customer Experience Professionals Association (CXPA.org), a global non-profit organization dedicated to the advancement of customer experience management.
Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld. Customer Experience Matters is a registered trademark of Temkin Group.