Net Promoter Score and Partnership Working

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1 Net Promoter Score and Partnership Working

2 What we are going to cover Introduction to NPS NPS in a partnership working environment How to do it Strength and weaknesses Time for discussions and Q and A

3 Introduction Leisure-net is the leading provider of Net Promoter Score (NPS) to the UK leisure, sports, health and fitness sector Accredited NPS Practitioner NPS is (if used properly), probably the most powerful single indicator of your customers view of your business It is a proven indicator of customer satisfaction, loyalty and commitment

4 Net Promoter Score The Net Promoter Score is worked out by subtracting your % of Detractors from your % of Promoters. The NPS question is How likely is it that you would recommend this service to a friend or colleague? With 0 being not at all and 10 being extremely

5 The NPS calculation

6 Promoters (score 9-10) are loyal enthusiasts who will stay longer, spend more and refer others, fuelling growth. Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to leaving or competitive offerings. Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

7 Net Promoter Score So, if in the example below you had 20% scoring between 0 and 6, 40% 7 and 8 and 40% scoring 9 and 10, then your NPS would be 20 ( ie 20-40%) Detractors 20% Passive 40% Promoters 40% NPS = 20

8 Satisfaction surveys can be misleading; most defectors ARE satisfied

9 Is there a universal ultimate question? Would you recommend us to a friend? Probes both dimensions of loyalty. Head Heart * Best features * They know me * Best service * They value me * Best price * They listen to me * They share my values

10 Tailoring the conversation based on NPS Likelihood to recommend Promoter What would you tell someone to get them to try our brand/service? Passive What could we do to improve? Detractor What are the reasons for the score that you gave? Drivers of advocacy Opportunities to delight Issues and concerns

11 Total customer Worth for Promoters and Detractors Based on Average Spending and Word-of-Mouth Behaviours

12 Referral and Recommendation Used to be Bad Experience = 10 people, good experience = 3 short time period Impact of internet grown these figures exponentially 1 negative = 5 positives Sports, leisure and H and F is R and R sensitive because Community based High service interaction industry

13 Benchmarks

14 CSPN survey 2013 A range of 79 to minus 26!

15 CSPN NPS survey

16 ukactive Operator of the Year Averages NPS Detractors Promoters Detractors NPS Promoters 0% 10% 20% 30% 40% 50% 60% A range of 3 to 76!

17 NPS Leaders U.S Company NPS USAA Banking +81 Discover - Credit Card +52 USAA Auto Insurance +81 State Farm Life Insurance +45 Kaiser Permanente - Health Insurance +40 Apple - Tablets +66 Apple - Laptops +72 Apple - Smartphones +67 Pandora - Online Entertainment +56 Amazon.com - Online shopping +64 Southwest - Airlines +62 Tripadvisor - Travel Website +46

18 Considerations for using NPS in Sports and Leisure sector B2C V B2B For both need to consider when, who and how Transactional V Relationship B2B need to consider different levels Must attempt to close the loop

19 Using NPS its not just a number Increasing number of organisations are using NPS as their key CE matrix But measuring by itself is not enough The score wont move unless you change things/take action

20 Strategic or tactical? Strategic identify the drivers of detraction and promotion Tactical

21 Frequency and Level Little and often Different levels of heirachy Weighted

22 How reported and to whom Its all about what you do with the data Recovery strategy Life cycle analysis

23 Drivers of detraction Tend to be hygiene type of attributes The basic such as cleaning etc But also if you to fail to value your member in serious ways this can also create detractors

24 Drivers of promotion Tend to be relationship related With staff, friends, colleagues or other members We need to create the opportunity for these touch points and then facilitate a promoter experience

25 Strengths and weaknesses for partnership working Strengths Simple to understand for both people completing and people reporting scores to Can be used for both partners and end users This sector is based around building relationships Weaknesses Works best in a competitive market where they are options

26 Use in Quest SD Partner Survey Optional for SD Quest For a team to progress onto stage 2 of the SD Stretch assessment they need to score in the upper quartile (40 or above) of NPS. This score is calculated in comparison to other teams that have gone through the SD Partner survey even if not necessarily gone through for stretch Minimum of 25 responses are required

27 Case study Southwark SD Team Introduced NPS surveys 12 months ago Established a benchmark of the CSPN average Focus on getting back to all detractors All surveying and reporting, plus tracking of follow up actions done online

28 Key benefits if done properly Simple customer service indicator which the whole business can understand and focus on It can be Cost effectively delivered with minimum effort on the operators part if built into the business normal operations NPS can become the key driver of your customer/client/partners service strategy

29 Thank you Follow up Copy of this presentation PDF of NPS Info sheet Link to video demo of the Insight platform Link to online training module for NPS Offer of a complementary NPS survey using on online platform

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