By Kevin Flanagan, Marketing Director, Micronotes
Are you familiar with Net Promoter® Score?
NPS® measures the loyalty that exists between an organization and an individual by asking one question: “How likely is it that you would recommend our company/product/service to a friend or colleague?”
Respondents choose a number from 0 to 10. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., above 0) is considered good, and an NPS of +50 is perceived to be excellent.
Financial institutions operate in one of the most competitive industries today. Most Americans have the choice of banking with the many national, regional or local banks and credit unions that want their business. And the fact that the vast majority of bank transactions now take place via digital channels eliminates the advantage that institutions with a local physical presence in a community once had.
Given this landscape, you’d think that most financial institutions would be eager to use NPS to ascertain “how they’re doing” with their customers and members. But that’s not the case.
Fred Reichheld of Bain & Company is the creator of the Net Promoter System. In a recent blog post on LinkedIn, Reichheld wrote about the benefits banks can realize from conducting NPS surveys: “The pressure is on banks to improve customers’ experience and earn their loyalty. [L]oyalty drives growth and better economics. For example, banks that lead in Net Promoter Score, which measures the likelihood that a consumer would recommend the bank to others, outperform laggards in net interest income growth.”
And what, you might wonder, does NPS have to do with Micronotes and our AI-driven marketing automation solution? Well, Net Promoter Score measurement is one of the core capabilities available to our clients as part of their Micronotes subscription.
In fact, Micronotes clients typically conduct an NPS survey as the first campaign they launch after deploying our solution. They use the results to adapt their approach to meeting the needs of their digital banking users.
Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.