Survey Reveals Direct Link between Net Promoter Score (NPS) and Service Provider Revenues

August 8, 2013 BG&A Staff
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Amdocs, the leading provider of customer experience systems and services, conducted a global consumer survey of smartphone owners that explores the link between Net Promoter Score (NPS) and service provider revenues and costs. The NPS is a customer loyalty metric, which measures the willingness of consumers to recommend a product or service to others.

The survey revealed a direct link between NPS and service provider revenues, with 88 percent of consumers indicating that they would increase spending with their service provider by almost one third if they received better service, and a further 84 percent stating they would be happy to recommend their service provider to family and friends, thus reducing the cost of customer acquisition.

“This type of research helps quantify the link between customer loyalty (NPS) and profitable growth,” said Fred Reichheld, founder of Bain & Company’s Loyalty Practice and creator of the Net Promoter system of management. “The results provide a clear message to the industry: improve customer service if you want to grow.”

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