You may have heard the term Net Promoter Score (NPS), but are you using it at your bank? If not, it’s definitely worth looking into.
NPS is a tool used to gauge a customer’s overall satisfaction with your products and services, as well as loyalty to your brand. NPS surveys are not only used in banking, the tool is a customer service standard for measuring engagement in all industries, around the world.
The foundation of an NPS program revolves around the question: “How likely is it that you would recommend our company to a friend or colleague?” Respondents rate this on a 0-10 point scale (0 = Not at All Likely; 10 = Extremely Likely); with scores categorized as follows:
- A 9 or 10 score indicates a Promoter. They are loyal customers who will keep buying and referring others.
- A 7-8 respondent is called a Passive. They may be satisfied customers, but they are unenthusiastic, with a potential to leave. However, they also represent an opportunity, as this group is more likely to become a promoter.
- A 0-6 score is a Detractor. These individuals are unhappy and can do damage to your bank brand/image. They are also more at risk of leaving.
To determine an NPS score, you need to subtract the total percentage of Detractors from the total percentage of Promoters (passives are considered neutral). An NPS can range from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
Most likely, you’ll fall somewhere in between. In fact, according to CustomerGauge, the average NPS score for banking/financial services is 34. In general, anything above 0 is considered good; 50 and over is considered excellent; and 70+ is world-class.
To get the most value out of an NPS survey, you should also ask a follow-up “why” question specific to the rating given. If someone rates a 9/10, ask something like, “What is the primary reason you would recommend us?” For a passive (7/8) ask “What would it take for you to provide a 9/10?” And for Detractors (0-6), ask “Why did you give this score?”
What can I use NPS for? At our bank, NPS is one of our key performance indicators used to measure our success in serving the customer. We survey customers twice a year, and senior leadership reviews the results and monitors trending. In addition to the score itself, we find great value in reviewing the open-ended comments provided in the “why” follow-up question. Here we look for themes and patterns we can use for improvement as well as celebration.
Additionally, we’ve taken this to the employee level and use an employee Net Promoter Score survey (eNPS) to measure employee engagement. This score is also one of the KPIs we use to ensure a satisfied and engaged workforce.
Having both an NPS and eNPS program is a smart move. It’s a low-cost, highreturn way to have a pulse on both your customers and employees — two things you need to survive and thrive.
Plain and simple, net promoter is another metric your bank should look at to make sure you are providing an exceptional experience for your customers, both internal and external. Because without one or the other, we wouldn’t be here!