Net Promoter Scores Show How You Compare to Competition

If you thought brand loyalty was accomplished with advertising, think again. According to the bestselling book “The Ultimate Question” by Fred Reichheld, the thing most service providers wonder is, “Would my customer recommend my service to a friend?”

Carriers are trying to focus on increasing their net promoter scores, which is an index premised on the fact that customers’ satisfaction and loyalty can be measured and compared.

Net promoter score is calculated by taking the percentage of customers who are considered “Promoters” (meaning that they rated the company 9 or 10 on a zero-to-10 point scale) minus the percentage of those considered “Detractors” (rating six or lower). Essentially, this translates into more revenues from existing clients and more clients based on the promoter’s recommendations.

Obviously, service providers want to increase their net promotion scores to as high as possible. With a recent Coleman Parkes-Amdocs survey, it was reported that 84% of customers are more likely to recommend their service provider if it could identify and solve customer care issues proactively.

Although the net promoter score is important to measure how customers feel about their service providers and the experience they provide, measuring it should not the ultimate goal. As Verizon Wireless has shared, it is an indicator that helps you decide what to focus on to improve the customer experience, and proactive care plays an important part in achieving that.

Read more on the Amdocs Voices blog