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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.
Macquarie Telecom Group
Macquarie Telecom Group are an Australia’s data centre, cloud, cyber security and telecom company for mid to large business and government customers. They have identifed that their customer retention and cross sell have increased while debtors have decreased as Net Promoter Score has improved.
Temkin Group Research (June ’16)
New research from Temkin indicates:
NPS was highly correlated to the likelihood of a customer to purchase more from a company (R = 0.81).
When compared with detractors: …
– promoters are more than five times as likely to repurchase from companies
-more than seven times as likely to forgive companies if they make a mistake
-almost nine times as likely to try new offerings from companies.
Business Telco Uses NPS To Increase Orders
IT Supplier Uses NPS to Find New Sales
IT Product Supplier used NPS process and identified new opportunities in 39% of follow-up meetings [Tweet this stat]
IT Vendor Doubles Growth Rate
IT Vendor used NPS process and doubled growth rate in accounts that participated [Tweet this stat]
Forrester Finds Customer Experience Drives Revenue
According to Forrester, Customer Experience affects the bottom line: Annual revenue change from a modest shift in customer experience for a $10 billion company [Tweet this stat]
- Buying more products: $64million
- Reduction in churn: $116 million
- Word of mouth $103million
Global Communications Business Increases Sales by 13%
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]
Global B2B Company Doubles Loyalty
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]
Global Facilities Company Lifts Retention Rates 46%
According to Forrester, aGlobal Facilities company improved their retention rates by 46%, using the Net Promoter process. [Tweet this stat]
Cablecom Find Lifetime Value Linked to NPS
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]
A&E Television shows strong link between NPS and Ratings
The chart below shows that Net Promoter Score and Ratings are mostly correlated for A&E Television shows. Low NPS drives Low Ratings, High NPS drives High ratings. [Tweet this stat]
Major Telco Links NPS to Churn
A major Telecom company was able to deliver a 25 point increase in NPS which lead to a 3% reduction in early life churn and a 5% increase in first call resolution. [Tweet this stat]
Optus (Telco) Links NPS to Customer Experience to Reduction in Churn
“Optus’ country chief officer Kevin Russell said that the carrier’s customer-focused initiatives were paying off, with a 50 per cent decline in the number of new complaints to industry ombudsman and a six points jump in its Net Promoter Score over the December quarter.
“This has put Optus’ benchmarks for customer experience into positive territory for the first time in a number of years,” Optus said in a statement.
“These customer experience improvements are reflected in a reduction in mobile postpaid retail churn to 1.4 per cent.”
Allianz Shows High NPS => High Revenue Growth
The chart below shows that Allianz operating units with a high NPS have a higher overall compound annual growth rate (CAGR) than those with lower overall NPS scores. [Tweet this stat]
Retailers link NPS to Store Sales
The chart below shows that in stores with a high NPS customers bought one or more product 20% more of the time than stores with a low Net Promoter Score [Tweet this stat]
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]
eBay Linked NPS to Revenue
eBay found, see chart below, that the average GMB (revenue score) is consistently higher for Promoters than Detractors, across their 6 top markets. [Tweet this stat]
Maersk Link Shipping Increases with increases NPS
“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]
Health Insurance Provider nib links NPS to attrition rates
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]
Multi-industry NPS -> Revenue growth linkages
More statistics showing that NPS and Revenue Compound Annual Growth Rate ( CAGR) are linked. [Tweet this stat]
American Express Links Shareholder value to NPS
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]
Tech companies NPS linked to purchasing momentum
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]
Full story: Net Promoter Score and Market Share For 60 Tech Vendors
Organge France (Telco) Links Churn to NPS
Orange France has identified that NPS is highly correlated with churn propensity. [Tweet this stat]
Full story: Orange France – Using NPS as a Lever for Organizational Change
Progressive Insurance Correlates Retention rate to NPS
Progressive Crop. has identified a solid correlation between NPS and insurance policy customer retention: [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.”
Source: The Progressive Corporation Investor Relations Meeting
Outsourcing Company links sales and revenue to NPS
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.
Bain Calculates the Incremental Value of a Promoter — Multi-industry
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.
Telco iiNet Directly Links Net Profit to NPS
iiNet’s CEO Michael Malone states in this interview that a 1-point increase in their NPS equaled an A$1.6 million increase in net profit after tax [Tweet this stat].
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.
Heineken Links Revenue to NPS
What’s the value of driving customer satisfaction? – Promoters spend 2.5 times more than detractors. [Tweet this stat]
Source : http://www.syngro.com/knowledgebase/publications/case-studies/heineken-case-study/
Stora Enso (Pulp and Paper manufacturer, B2B)
Company focused on converting Detractors. In a direct comparison of the same group of customers, Stora Enso converted 77% of Detractors to Passives and Promoters.
These “converts” changed their purchasing behaviour as a result:
- Customers who remained Detractors—average sales fell 36%
- Customers who were converted to Passives—average sales increased by 16%
- Customers who were converted to Promoters—average sales increased by 25%
British Gas NPS Turn Around
British Gas’s NPS program delivered substantial returns.
Symantec Reduces Costs
Symantec implemented Net Promoter in the part of the business that develops and market “Norton” products. In the process they substantially lifted their Net Promoter score and delivered, amongst other benefits:
- Support achieved a 10-12% reduction in call times, plus agents now handle an average of 1.6 customers at a time.
- 30% reduction in support costs was reinvested in the customer experience, keeping overall budgets flat.
Source: Satmetrix Case Study
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 2009
Filed Under: Case Studies and Statistics, Net Promoter ScoreTagged With: Net Promoter, Net Promoter Score, netpromoter, NPS, Success Stories