NET PROMOTER SCORE- TO MAP & MANAGE

CUSTOMER RELATIONSHIP
Net Promoter Score

10
9
8
7
6
5
10 4
3
2
1
NPS

-100 +100
Detractors Passives Promoters
Net Promoter Score
How likely are you to recommend to a colleague or friend?

DETRACTOR PASSIVE PROMOTER

S S S

0 1 2 3 4 5 6 7 8 9 10

Not at Extremely
Neutral
all likely likely

% of Promoters % of Detractors
NPS = (9s and 10s) - (0 through 6)
What is a promoter in NPS?
A promoter in NPS is anybody who answered the ‘how likely are you to
recommend this product/company to a friend or colleague?’ question with a
score of 9 or 10.
As your most enthusiastic customers, promoters are likely to stick with you and
act as your brand ambassadors, which in turn helps fuel growth

What is a detractor in NPS?

A detractor in NPS is anybody who answered the ‘how likely are you to
recommend this product/company to a friend or colleague?’ question with a score
between 0 and 6 (included).
They’re obviously not your biggest fans. But it’s worse than that: not only are they
not likely to recommend you to others—they are the first candidates for leaving
you and might even actively discourage other people away from your product.
One of your main goals is making sure you have fewer detractors.
 What about Passives?
Sitting in the middle of detractors and promoters are the passives, who
answered the NPS question with a score of 7 or 8. Technically, you should look at
them as people who are ‘passively satisfied’ with your product or service but
are not supremely loyal to it, which means they can be snatched away by the
competition.

Pro Tip
Passives are not directly included in the NPS calculation but do not underestimate
their importance. They are so close to being promoters, especially when they
give you a score of 8, that any time spent investigating what you could do
better/differently to win them over is time well spent.
Dataset from the last 30 days of NPS survey that got 563
responses:

How to calculate NPS:

1.Add up the promoters - those who scored 9 and 10
2.Add up the detractors - those with responses 0 to 6
(included)
3.To calculate the percentage, divide the number of
promoters by the total number of responses
4.Repeat this process for detractors
5.Apply the NPS formula: percentage of promoters minus
percentage of detractors
Dataset from the last 30 days of NPS survey that got 563
responses:

How to calculate NPS:

1.Add up the promoters 238+80=318
2.Add up the detractors - those with responses 0 to 6
(included) 9+2+3+3+7+23+25= 72
3.To calculate the percentage, divide the number of
promoters by the total number of responses
(318/563)*100=56.48%
4.Repeat this process for detractors (72/563)*100= 12.79%
5.Apply the NPS formula: percentage of promoters minus
percentage of detractors
56.48%-12.79%=43.69%
NPS= 43.69%
What Do Companies with High Net promoter Score Have
in Common
Market Leaders’ NPS Scores

•Netflix’s NPS is 68, well above their competition;

•Starbucks’ NPS is a decent 77;
•Amazon’s NPS is a pretty high one at 62;
•Airbnb’s NPS is quite strong at 74;
•Tesla’s NPS is an astounding 96.

Given that an NPS score averages between -100 and 100, it’s clear the NPS scores of these
top companies match their brands’ level of popularity.
High Customer Retention and Growth
A high NPS score means a lot of customers are so happy with the brand that they are
much more likely to stick around with it simply because they like the company alongside
its products and its services.
Amazon Customer Retention
Research has shown that 73% of people who try out Amazon Prime become paid members. What’s more, after the
first year, 91% of the members renew their subscription for a second year, and 96% of those members pay for a
third year as well.
Even today, Amazon is actually boasting amazing customer loyalty, at least according to Forbes; however, the
company isn’t quite ready to share exact customer numbers. Still, Amazon did state they signed up more new paid
members in 2017 than any other year.

Airbnb Customer Retention

The platform has grown very popular since it first launched, and Airbnb’s NPS score reflects that. According to 
statistics, Airbnb has around 43.2 million users as of 2018, and the number is expected to grow to around 60.8
million by 2021 – and that’s only in the US! Worldwide, it’s estimated that Airbnb has around 150 million users.

Tesla Customer Retention

Tesla’s customer retention shows what an impact that huge NPS score has. Apparently, approximately 
91% of Tesla owners said “they would buy again” from this brand. Tesla was actually no #1 in the 
2016 Annual Owner Satisfaction Survey. Moreover, this was a 6% increase from 2015. At the same time, 25% of
Tesla owners said they’re not even considering buying a different vehicle or doing business with another brand.
Netflix Customer Retention
Compared to its competitors, Netflix has an amazing retention rate. According to research,
while a lot of Hulu (61%) and HBO Now (62%) subscribers pay for other streaming
services, 80% of the Netflix subscribers don’t.
In fact, the Hulu and HBO Now subscribers in question actually pay for Netflix on the side!
Plus, the average Netflix subscriber will stay with the company for 25 months. So, Netflix has
enough time to earn back the money they spend on acquiring new customers.

Starbucks Customer Retention

Consumers love Starbucks – even more since the company implemented its rewards program.
Apparently, customer loyalty was so high that Starbucks’ program ended up 
holding more money than some banks.
Starbucks’ app is also used regularly by around 48% of app users, showcasing the kind of
customer loyalty the brand enjoys.
 What Do These Companies Have in Common?

1. Simple, Reliable Services & Products

2. Fast, Straightforward, Quality Services

3. Amazing Customer Service

4. Unique, Innovative Products and Offers

5. Exceptional Customer Experience

6. High Customer Loyalty and Word of Mouth Advertising

7. Consistency is the Key
 1. Simple, Reliable Services & Products

All these market giants have so many Promoters because those people love how easy their services/products are
to use, and how reliable they are.
The biggest initial selling point of Netflix was its simplicity – a great online entertainment service that saved you
time. That trend continues to this day.
Amazon has invested plenty of resources into making its sales, shipping, and return processes as simple and
reliable as possible.
Tesla’s cars feature a very sleek, user-friendly design. Instead of multiple buttons, joysticks, and knobs, Tesla
owners get to enjoy a large display screen that features easy-to-use on-screen touch controls.
The Airbnb’s platform is fairly easy to use and get the hang of, and its mobile apps are simple to understand too.
Since guests can message hosts before making a booking to ask questions and get to know them, it also makes
the service quite reliable in the sense that people will know exactly who they will be doing business with.
As for Starbucks, they’re known for offering what some would call “the best coffee experience,” highlighting their
reliability. Plus, their loyalty app lets people order ahead, meaning they can just place an order for a coffee and
food, and pick it up on their way to work or home.
That’s not to say you need do the exact same thing as these companies, but anything that makes your product a
more convenient, reliable, and dependable choice will increase the value a customer gains from staying with
you.
 2. Fast, Straightforward, Quality Services

They Make Customer Interactions with Their Brands Effortless by collecting all the relevant info from customer
complaints, support requests, and feedback, and sharing it across departments in their companies. For instance,
once you have registered a complaint with Amazon, you don’t have to keep repeating the problem over and over
again. The records of customer complaints are persistently stored in Amazon’s centralized database, and can be
accessed conveniently by any customer service executive.
Netflix makes it easy to call them through a toll-free number, and has an extensive “knowledge base” where users
can usually find the solution they seek on their own. Their live chat is also known to be quite speedy, helpful, and
easy to access since it’s clearly displayed on the website.
Tesla is well-known for providing a hassle-free, personalized customer experience, and they have even started 
allowing customers to escalate issues to a company executive. Tesla customer reps also communicate with other
internal departments to improve the customer experience.
Something like this might not always increase the number of Promoters, but it goes a long way in reducing the
outflow of Detractors, thereby improving your Net Promoter Score. It can also cause existing Promoters to act as
your brand advocates, and potentially turn Passives into Promoters.
They Provide Single Sign-On Features
Netflix and Amazon let you access all their services using just one credential. For instance, you can use your
Amazon ID to place orders, access AWS services, or purchase books on Kindle. Similarly, you can purchase a single
Netflix subscription and use the credentials to stream content from any of your devices.
 3. Amazing Customer Service
All these companies offer a personalized, convenient, and satisfaction-oriented customer experience.
Amazon employs large customer rep teams, makes it very easy for consumers to return items, and goes above
and beyond to offer true customer satisfaction – whether it’s by 
letting people keep the items they accidentally ordered and shipping the right ones free of charge, or 
refunding small balances of 16 cents to customers when the price of an item they’ve previously ordered
decreases.
When Netflix subscribers run into an issue, they know they will be talking with a real person on the other end –
their employees are allowed to make their chats funnier and more engaging, which makes them more
memorable for customers. Even the CEO would take calls every once in a while.
Starbucks focuses on making people feel like they belong to a community – even going as far as 
asking customers for ideas, and implementing some of them. Starbucks baristas are also encouraged to
remember customers’ names to make the whole experience feel more personal – a decent move, given that 
75% of consumers are more likely to buy from a company that addresses them by name.
Tesla’s personnel is heavily focused on customer convenience, with some reps even paying customers a visit if
they live too far away from a service center. Tesla’s sales reps (also called Product Specialists) are on the
company’s payroll and don’t get sales commissions, meaning there is never an incentive for them to pressure
buyers to make a purchase.
As for Airbnb, their customer support is really straightforward and well segmented (since they have 2 different
users – hosts and guests). The company goes to great lengths to ensure users are happy – even 
offering a $1 million guarantee for hosts!
 3. Amazing Customer Service

The main thing that is common across these brands’ customer service departments is this:
Quick, Responsive Omni-Channel Support
All these brands focus on responding as fast as possible to consumer demands and complaints, which is a
smart move given that around 32% of consumers expect a response to a complaint or review they left online
within 30 minutes.
Besides that, these companies acknowledge the importance of omni-channel support. After all, 
over 35% of consumers expect to be able to contact a customer rep on any channel. Also, businesses with
omni-channel support have over 91% greater year-over-year customer retention rates.
Having support reps answer phones and emails is a nice start, but many customers are likely to contact you on
social media too.
 4. Unique, Innovative Products and Offers
There’s no streaming service with a larger range of content than Netflix (although Amazon’s competing service comes close).
Tesla established itself as a huge source of innovation on the automotive market. Airbnb made their brand stand out through
unique-looking, engaging website design and by popularizing the idea of guests sharing a place while the host was also there.
Starbucks innovated the way it’s sold. As early as 2008, Starbucks publicly announced they were changing the way they made
coffee to offer the best possible experience. The company made its brand more appealing and unique by adopting and
promoting the homely coffee-house vibe people saw in shows like “Friends.”
 Encourage your employees to think creatively.
Netflix encourages employees to come up with ideas about how to improve the company’s services, form groups to discuss
said ideas with other employees, and then ask other departments for input.
Google is another good example (even though it’s not present in this article), as they allow engineers to 
spend 20% of their work week on projects that interest them.
Look for ideas everywhere. That includes listening to your customers and your team. If you are using Net Promoter Score
surveys, ask customers how you could improve your product or service when asking for feedback.
Netflix is a good example of what can go wrong if you don’t take customer satisfaction surveys seriously. The company’s CEO
– Reed Hastings – wanted to change a subscription service that offered access to DVD rentals and unlimited on-demand
streaming by splitting it into 2 different services which would be priced separately. That would result in a 60% price hike for
customers. When asked how customers might react to this, Hastings said there’d be minor backlash. That was a baseless claim,
as no customer satisfaction surveys were performed prior to the decision. After the price hike was introduced, Netflix lost
around 800,000 subscribers, and its stock price dropped by approximately 77%. The company obviously recovered, but that
mistake almost cost them their business.
Look for valuable customer feedback that gives you plenty of ideas for product innovation. Listen to their thoughts carefully and
choose the ones that best fit your needs and goals.
 5. Exceptional Customer Experience
 According to statistics, 78% of online consumers say that personally relevant content from brands increases their purchase
intent, and personalization can reduce acquisition costs to as much as 50%.
38% of customers believe personalization plays a vital role in delivering happy customer experiences.
Netflix uses the power of AI and machine learning analytics for personalized video recommendations. Tesla’s buying process is
very personal for consumers, and Starbucks’ loyalty program is focused on offering personalized rewards and offers. Starbucks
employees are encouraged to address customers by name. Airbnb uses machine learning so that they can offer users a more
personalized travel experience. Personalization makes customers feel that you’re delivering a one-to-one customer experience,
thereby improving user engagement and customer satisfaction.
They Build Up Their Reputations
Customers feel less anxious when they have fewer choices to make. For example, you would rather order stuff from Amazon than
take the risk of trying a new online store. It’s because Amazon has built up the reputation of being the #1 online marketplace.
Tesla has built its reputation as the most reliable provider of electric cars, and Netflix has its reputation as the streaming platform
with the biggest content variety. Reputation is about building customer trust so that they feel comfortable sharing information
and transacting on your platform.
They Focus on Accountability
Amazon has managed to practically kill ‘brick-and-mortar’ businesses by instilling great accountability into their business model.
You can order anything from Amazon, and return it within 15 days if you don’t like it. Amazon even 
refunds customers the price-difference on items they recently bought. Airbnb, offers hosts a $1 million guarantee. When Netflix
changes pricing plans, they give existing members a price guarantee for a certain time, letting them use the pricing plan they
initially chose. Starbucks goes as far as offering a 60-day guarantee for its products.
Basically, people buy from businesses that have high accountability and credibility, as it reduces buyers’ anxiety and makes
them confident about making future purchases.
 6. High Customer Loyalty and Word of Mouth Advertising

Brand loyalty enables you to eliminate price sensitivity, beat the competition and mitigate exorbitant
marketing expenses.
 Increasing customer retention by just 5% can boost your profits by up to 25-90%.
NPS is nothing but the measuring scale of customer success, with brand loyalty as the measurement unit. The
reason these brands have high NPS scores is because they have succeeded in building up immense brand
loyalty:
Tesla has an almost cult-like following;
Netflix has the most loyal customers;
Amazon’s loyalty rates are so good they eat into competitors.
Companies with high NPS score have a lot of customers who love their brands so much they are more than
willing to recommend them to their friends and family.
As a result, companies like Amazon, Airbnb, and Tesla have people doing marketing for them at no extra cost –
bringing in more potential customers who already view the brand in a positive light.
 74% of consumers say that word of mouth advertising is a key influencer on their purchasing decisions.
How do these companies achieve something like this? Well, here are the main things they do:
 7. Consistency is the Key

Once you’ve created a unique product experience that people want to talk about, the
next step is to be consistent in your efforts. After all, it takes months to win a customer,
but only seconds to lose one.
Amazon provides great customer experiences, regardless of the size of your order and
the frequency. It doesn’t matter whether you order from the app or through the website
– the shopping experience stays consistent.
Netflix lets you stream your favorite movies or shows at the same speed, regardless of
your device, the movie genre, the time, or your location. Tesla has consistently raised the
bar in terms of product innovation, and has always made sure all their customers benefit
from car redesigns, like when they changed the seats for all Tesla cars free of charge to
improve owners’ comfort levels.
When a company consistently delivers great customer experience, they infuse customer
loyalty and motivation to talk about those experiences.