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It's no secret that the long-term success of almost any company directly depends on the loyalty of its customers. A good consumer attitude consists of many factors: whether they like the company’s products or services, whether they are satisfied with the level of service, whether they consider the organization reliable, etc. Today, companies measure consumer attitudes on an ongoing basis. An indicator comes to their aid in this NPS – consumer loyalty index. What “signals” does this indicator give to various areas of business? How does it help individual companies? And what are the pros and cons of this method? Let's look at examples from different market segments.

Just a little theory J. Let us remind you that the loyalty index NPS (Net Promoter Score) determines consumer commitment to a product or company. The indicator, even by marketing standards, is quite young: it was first introduced in 2003 by American business strategist Frederick Reichheld. Net Promoter Score is very easy to measure. To do this, consumers are asked to indicate on the scale from 0 to 10, how likely they are to recommend the company/product/service. Based on the results, all respondents are divided into three groups:

• "Promoters"(9-10 points) – loyal customers, ready to recommend;
• "Passive"(7-8) – passive clients, generally satisfied, but do not want to recommend;
• "Dissatisfied"(0-6) – not satisfied and will not recommend.

The NPS index is calculated as the difference in the relative number of promoters and dissatisfied people. The higher it is, the higher consumer loyalty.

There are 3 main types of companies, according to their NPS indicator:

• 5-10% NPS– companies with average levels of consumer loyalty. Such organizations are not characterized by either consumer churn or significant growth in the foreseeable future.
• 50-80% NPS– the most successful companies, leaders of their market. With high customer loyalty, they guarantee themselves high growth rates in all areas.
• 45% NPS– such companies are not leaders in their market, but they are not losers either. They have high growth potential and are very attractive to investors.

Thus, the author of the method, Reichheld, conducted research in more than 400 companies America. The average for small businesses was 16% . And companies like eBay, Amazon, Rackspace, TD Bank, Harley-Davidson, Charles Schwab, Zappos, Costco, Vanguard, and Dell efficiency rating reached 80% .

Today, the Net Promote Score index is regularly calculated by many Russian companies, as well as research and analytical agencies, in order to understand the level of loyalty not only for a specific brand, product or service, but also for the industry as a whole.

Telecom: how Beeline overcame the catastrophic gap between critics and promoters

Most major players in the telecom market measure NPS. In some cases, it became a very important and alarming signal. Thus, among the Big Three operators, Beeline had the lowest NPS in 2013. However, thanks to the customer-centric strategy announced in 2014, the company managed to raise this figure and get closer to MTS, says VimpelCom General Director Mikhail Slobodin.

« In the fourth quarter of 2013, we, unfortunately, recorded a historical anti-record of balance between those who recommend us and those who categorically do not recommend us. The gap with our competitors was simply catastrophic. Now we can already talk about it - then we modestly kept silent about it. The gap that we had more than a year ago, this simply cannot be allowed in the industry. And this, in fact, was reflected in the outflow of our key client base. In 2014, we invested in getting clients to trust us again and stopped running from us like hell from incense. And over the past four quarters, we have been consistently improving this indicator, for the first time in the history of VimpelCom over the past five years. Now we are almost on par with MTS, a little left before Megafon , – Slobodkin said in an interview with Vedomosti.

In addition, in March of this year, VimpelCom announced the launch of a system for collecting, analyzing and processing feedback based on the principle NPS, from customers who connected at dealer showrooms.

In dealer showrooms, the system works in the same way as in Beeline’s own channels - in the form of an SMS survey. Messages come from short numbers and contain 6 questions. The survey is sent to the customer 24 days after service at the dealership.

Information received from clients forms the basis for resolving individual issues and systemic problems, says the official statement of the VimpelCom company.

Banks: NPS showed a good level of loyalty of B2B clients

Most banks and financial institutions analyze customer data, including product, payment and loyalty indicators, on a quarterly basis. Among the main indicators is the consumer loyalty index.

Thus, in February 2015, an all-Russian survey by NAFI (National Agency for Financial Research) was conducted, during which 500 executive employees of small, medium and large businesses in 8 federal districts of Russia answered questions.

He showed that most entrepreneurs are satisfied with the quality of service in their bank, although they show low loyalty. Average value NPS in the b2b segment is 26%: this is how many respondents are satisfied with the work of a financial institution, but are in no hurry to recommend it to others. This indicator indicates the average position. Every second respondent is ready to recommend their main bank ( 50% ). More 24% respondents are considering an alternative financial services provider. The majority of promoters were among companies founded between 1991 and 2000 and representatives of medium-sized businesses. In turn, a neutral position is more often occupied by enterprises created in 1990 and earlier.

This indicator was positively assessed by the NAFI expert. Irina Lobanova, Head of the Banking Sector Research Department at NAFI:

« The average NPS indicator is considered to be 10-15%, but much depends on the specifics of the market.<…>For the financial industry, where interaction with the client is long-term and communication is carried out through many channels, especially for the legal entity segment, an average figure of 25-30% can be considered. In the current situation, when the average index value for the market is 26%, we can say that the work of most banks in forming a product line, promoting various services and monitoring the quality of service quite effective».

Automotive industry: up to 100 million rubles. spend by some manufacturers to increase NPS

In 2015, a strong stratification of the automobile market is expected. Meanwhile, disaster can be avoided by introducing new business models, reports the Company magazine.
To save dealers from themselves, the management of the main representative offices of auto companies took drastic measures, undertaking to change not only the business model of their partners, but also the consciousness of people. Foreign concerns are literally forcing Russian dealers to build relationships with customers in a new way. The main criterion for assessing such relationships in the USA and Europe is the NPS index.

So, in November 2014, the agency "Autostat" As part of a study of Russian owners' satisfaction with the car and the dealer, NPS was calculated. The leaders of the rating are brands Mercedes-Benz (70% ) and Land Rover ( 68% ). The TOP 10 of mass brands included KIA ( 62% ) and Skoda ( 57% ). Japanese brands have four places in the top ten - Mazda ( 61% ), Subaru ( 60% ), Lexus ( 57% ), and Toyota ( 56% ). Volvo also took the lead ( 60% ), who took seventh place. The obvious outsiders in the rating were representatives of budget brands - LADA (5%) and Daewoo (8%).

Now, to increase their NPS rating, some companies, such as Land Rover or Mazda, spend up to 100 million rubles. in year, send independent quality managers to dealers, launch online services for ordering spare parts, where all operations with parts are noted to avoid misunderstandings. Personal accounts for users are created on online resources, and “lifetime” managers are assigned to clients, as in Volvo, who are personally responsible for this or that repair. As a result, the NPS rating fluctuates in a positive direction.

Electronics: high NPS allowed Huawei to be in the top three

The NPS index, along with such important indicators as brand awareness, is measured by many international research agencies, including for the analysis and comparison of the largest players in the same industry in different countries of the world. Thus, in 2014, the IPSOS agency conducted a survey in 32 countries regarding electronics brands.

According to the results of this study, Huawei brand awareness increased from 52% in 2013 to 65% in 2014. This means that almost two-thirds of consumers in these countries are aware of the Huawei brand. According to IPSOS data, the Chinese vendor's Net Promoter Score has reached 43% , which allowed Huawei to be among the top three brands in this study, behind only Apple and Samsung. Thanks to such strong performance, the Chinese vendor this year plans to focus on high-end models that bring greater profits.

Air transportation: NPS confirmed the success of the low-cost Pobeda business model

The consulting firm Bain & Company, where the author of the NPS method, Reichheld, worked for many years, today successfully cooperates with many organizations around the world, measuring their level of consumer loyalty. One of the long-standing objects of study is the airline sector and its largest players around the world. Thus, Aeroflot Group regularly uses the NPS indicator calculated by Bain & Company for brand analysis and quarterly reporting. In recent years, Aeroflot’s loyalty index has shown stable growth, but its subsidiary, the budget airline Pobeda, has the best NPS indicators today.

Thus, Pobeda demonstrated a high level of loyalty of its passengers already in the first year of operation. The company officially announced this in February 2015 in connection with the transportation of its 100,000th passenger. According to Bain & Company research, Pobeda’s NPS significantly exceeded the indicators of most not only Russian but also European airlines, amounting to 72% . Thus, Pobeda’s customer loyalty index is even higher than that of Aeroflot itself. Although it is worth noting that Aeroflot’s NPS increased in 2014 by 9% compared to the previous year to 67% .

Such a good NPS indicator for Pobeda indicates not only a fairly high quality of service, but also the demand for low-cost air travel and growth prospects for such a business model. Expansion is already planned. Now the airline’s flight map includes 14 cities, but already in the summer schedule of 2015 it is planned to open new destinations, there will be about 20 routes in total.

Conclusion

Over a decade of use in practice, the Net Promoter Score index has established itself as a reliable indicator of business success. Empirical studies have repeatedly shown and confirmed in practice that NPS, of all the measures used to measure the success of an enterprise, is:

• leading indicator of business success;
• the most accurate forecast of consumer loyalty in the future;
• the simplest indicator in terms of speed and ease of measurement.

However, research shows that Net Promote Score is not measured as often. Thus, in an Oracle study dedicated to the implementation of modern effective methods of customer service

The Net Promoter Scope (NPS) has been successfully used by companies for more than 15 years. This is a fairly simple way to assess customer loyalty to a company.

NPS or Consumer Loyalty Index is a relatively new research method. The founder of the concept is Frederick Reichheld, who published it in the Harvard Business Review in 2003, calling the study “The One Number You Need to Grow.” In his study, the author insisted that in order to find out about customers' attitudes towards a company, it is enough to ask just one question: “What is the likelihood that you will recommend the company/product/brand to your friends/colleagues?” Having collected and analyzed the answers, you can calculate the index, which consists of several steps:

1. Consumers are asked to rate on a ten-point scale the likelihood that they will recommend the company/product/brand to their friends/colleagues;

2. Based on the ratings received, all consumers are divided into three groups: Those who gave nine and ten points are “promoters”, seven and eight points are “neutrals”, six points and below are “critics”;

3. The NPS index is calculated as the percentage difference between the number of “supporters” and “critics”. The rating range is from -100 to +100, where NPS 100 is the best scenario, in which all your customers are “supporters” of the brand, and NPS -100, accordingly, is the worst.

It is worth noting that in the West, loyalty studies are carried out with enviable regularity, unlike in Russia. For example, the global retail leader Amazon has an NPS of 61%, and the electronics manufacturer Apple has an NPS of 89%*. Unfortunately, there are no consolidated data on NPS indicators of Russian companies, and research is not conducted often. In the summer of 2017, UBS Evidence Lab published figures for Russian retailers: of the 14 largest players, five had positive values. The highest NPS was received by Lenta - 7% and Okay - 3%. In the banking sector, Sberbank's loyalty reaches 59%, in telecommunications Tele2 - 35%, Megafon - 17%, Beeline - 25%.

However, despite the fact that the method has quite a lot of followers, NPS has 5 main problems, which we will consider in this article, and also offer solutions, knowing which and successfully applying them in practice, you will be able to manage customer focus and service level .

Problem #1:NPSdoes not answer the question “Why?”

The first problem is that most companies stop at the NPS data collection stage. Let's say a company with a wide regional network of divisions has an NPS of 38%. Having received this data, they can say: “How wonderful, over the past year our indicator has increased from 32 to 38.” But at the same time, they will not find out the reasons why the index has moved (it is worth noting that the movement can also be in the opposite direction).

Therefore, the first thing you need to find out is why the company received this particular rating, why the changes occurred. Ask a series of questions, e.g.

• Why did you give us this rating?
• Why did you choose 5?

Find out the reasons and then dig even deeper, for example using the philosophy of "Kaizen" (continuous improvement and improvement in business).

Problem 2: Be aware of differences between regions and segments

Very often, when calculating the NPS index, regional values ​​and customer segmentation are missed, and the ranges can sometimes be very wide. For example, you can compare the NPS scores of customers who buy from you a lot and often with the NPS of new customers or those customers who have had problems interacting with your company. Find out what the difference is in their NPS because if you have a higher NPS with less important clients or your more difficult clients, that's a problem because they won't influence other people's opinions.

It is also worth paying attention to regional differences, because sometimes the difference between NPS indicators in different locations can reach tens of percentage points.

Problem 3: Invisible middle

As we noted above, in order to calculate the index, the highest indicators (those who gave 9 and 10 points) and the lowest (from 0 to 6 points) are taken. At the same time, when measuring, those respondents who gave 7 and 8 points, the so-called middle of the rating, are ignored.

Mathematics and, as a result, analysts miss these clients, but you must understand that they are very important. Clients in these ranges can become both “promoters” and “critics.” What can motivate them to move up, and what can keep them from moving down the rankings - this is what you must find out.

Problem 4:NPSnot measured widely or frequently

The problem is that NPS (like any category of surveys) are most often conducted once or twice a year. Considering the high pace of today's life, price changes and competitive dynamics, this is too little. NPS should become a constant analysis of your work for you, and not just a check from time to time.

Problem 5: Always use one communication channel

When surveying clients, always try to use the same communication channel to evaluate NPS. For example, if you conduct a telephone survey to compile an index, continue to use this channel in future studies. By using different methods of data collection, you risk getting very fragmented data. As practice shows, the results obtained through different communication channels can differ by tens of percent.

Measurement and evaluation are fundamental foundations of any business. The assessment shows what the company thinks and does. And the choice of indicators to measure the level of loyalty predetermines the thinking of employees and the further actions of managers.

The study of staff loyalty is dictated by the need to counter the negative trends of recent years associated with it, which entails loss of profit and competitiveness of the enterprise. This is extremely important to understand, especially for Russian companies.

Since the Russian economy has not yet created a competitive environment that encourages owners and employers to make the necessary efforts to evaluate and strengthen staff loyalty.

However, world experience shows that in an unstable market economy, it is precisely those enterprises that survive that constantly care about the dedication of their staff. Devotion, understood as the highest level of staff to the company in which they work, and the willingness to support it in difficult moments is an integral and main result of the work of the entire management and especially the personnel service.

Basic tools for studying staff loyalty.

Three methods became the main tools for studying staff loyalty:

1. Scale for measuring the loyalty of the organization’s personnel L.G. Pochebut and O.E. Queen.

2. Scale of “organizational loyalty” by D. Meyer - N. Allen.
The “Organizational Loyalty Scale” technique was proposed by John Meyer and Natalie Allen (Meyer J. P. and Allen N. J.) in 1990 in a version consisting of three subscales in accordance with the author’s three-component model of eight questions each.

In accordance with the model, the authors identify three approaches to loyalty that help explain the nature of the connection between the employee and the organization, which reduces the likelihood of the employee voluntarily leaving the organization: emotional attachment to the organization, awareness of the costs associated with leaving the organization, and a sense of obligation to the organization.

Employee Net Loyalty Index eNPS

The eNPS or employee Net Promoter Score is an index of net employee loyalty, allowing you to assess their satisfaction with the company.

In other words, are employees happy with working in your company and are committed to joint development, or are they disappointed with cooperation and are ready to move to another employer as soon as a more profitable offer appears on the market.

Reference:
The Net Promoter Score index is a relatively new method for assessing business success. In 2003, it was presented as a very simple and fast way to identify customer loyalty. An American marketer who has published many works on customer loyalty, Frederick Reichheld, proposed measuring customer loyalty by asking them about their willingness to recommend a product, service or brand to their friends and relatives. The innovation in this technique is that the client is asked to evaluate how confident he is in the product in order to “put his reputation on the line” in the eyes of those whose opinions are important to him.

Over the past ten years, this method has gained worldwide fame; it has been adopted by such international companies as American Express, Procter & Gamble, Amazon, Apple, Philips, and Sony.

Among Russian companies, NPS is measured by telecommunication companies (MTS, Beeline, MegaFon, Dom.ru), insurance companies (Ingosstrakh, Rosgosstrakh), banks (Alfa-Bank, Home-Credit) ), many restaurant and hotel businesses.

More and more companies are introducing this index as a key indicator of the effectiveness of their activities and also in assessing the loyalty of company employees to the company.

How is the eNPS index calculated?

Team satisfaction is assessed by surveying employees on two questions.

The second is “What is the main reason for this assessment?”

After the survey, the results obtained are analyzed.

For analysis, employees of companies are conditionally divided into three groups:

Promoters are employees who give a rating of 9 or 10. That is, employees who are loyal to the company, act in its interests and are ready to recommend it to their friends.

Neutrals are employees who gave a rating of 7 or 8. That is, those who are not inclined to recommend it to their friends or acquaintances. Neutrals are most often passive employees who, in principle, are ready to change the company.

Critics are employees who gave a rating in the range from 1 to 6. That is, those who are disappointed with working for the company are more likely to be actively looking for an alternative option and will never recommend it to their friends.

eNPS Score is the difference between the percentage of Promoters and Critics. Accordingly, the more of your employees are Promoters, the stronger the “foundation” of your company and the more prerequisites it has for active growth and development.

To put it simply, the formula for calculating eNPS is as follows:
(number of promoters - number of critics) divided by (number of respondents) and all multiplied by 100.

Example: You have received 100 responses to your survey.
10 responses ranged from 0 to 6 (“critics”);
20 responses ranged from 7 to 8 (“neutrals”);
70 responses ranged from 9 to 10 (“promoters”).

Calculating the percentages of each group gives you 10%, 20% and 70% respectively.

Subtract 10% (“critics”) from 70% (“promoters”) and you get a result of 60%. Since eNPS is always displayed as a whole number and not a percentage, your NPS will simply be 60.

What information does the NPS index provide?

An index with a plus sign indicates the predominance of loyal employees over critics.

Therefore, the higher the index, the less staff turnover you will have and the likelihood that “strong” personnel will come to the company based on the recommendations of existing employees.

If the index is 0 or takes a negative value, the situation becomes critical. Active and valuable employees may soon leave, and then problems will arise with hiring new personnel based on possible negative reviews about your company.

Please note that problems in a company often arise due to low loyalty of employees whom the company has assigned to maintain direct contact with Clients.

The eNPS index will allow you to objectively assess how ready your company is for active development and growth at one time or another in its existence.

Analyzing trends in responses to the second question allows you to quickly respond to issues of corporate culture, motivation tools, satisfaction with working conditions, etc.

Regular measurement of the eNPS level will give you an idea of ​​the mood within the team, allows you to assess the stability of the company and employees, employee satisfaction with your company’s policies, pay level, social package, etc.

Analysis of the eNPS index contributes to the high-quality building of a culture of relationships within the company, the organization of a clear team structure and the development of a strategy in the field of personnel development.

A low loyalty score based on the participation of company employees in decision making indicates a high probability of resistance to the changes that the company’s management will try to implement;

With a low loyalty index, employees are not so loyal to the company as to share with it the risks associated with choosing an active competitive position for business growth/expansion in the near future;

The personnel development program must be consistent with the strategic goals of the enterprise.

Conclusions:

Regularly measuring the eNPS level will allow you to objectively assess the loyalty and satisfaction of your company’s employees and, as a result, the team’s readiness to work with you towards long-term goals.

Which is directly related to increased profits and increased business efficiency!

1. Employee loyalty is not an abstract indicator, but a powerful driving force!

2. Staff loyalty must be measured and monitored!

Reference:
According to the results of research by the NAFI Analytical Center conducted in 2016, only 15% of employees of Russian companies are ready to recommend their employer to friends, and 62% are not satisfied with their place of work. The average NPS score is -47 points.

Practical recommendations for creating employer attractiveness in the labor market.

1. Formation of an internal image with the help of corporate values, rituals, mission and the formation of a single community “We”.

2. Development of measures to improve the internal company communications system, constant monitoring of the level of conflict.

3. Development of events to promote the company’s services, building long-term consumer preferences, developing marketing promotions and campaigns aimed at generating demand.

4. When creating an image, use the potential of the company’s mission, values ​​and norms as a resource that can create the individuality of the organization, increase the effectiveness of the image in order to build loyalty of both company employees and external target groups.

Net Promoter Score) - an index for determining consumer commitment to a product or company (readiness to recommend index), used to assess readiness for repeat purchases. It is one of the main indexes for measuring customer loyalty.

Measuring NPS involves several steps.

1. Consumers are asked to answer the question “What is the likelihood that you would recommend the company/product/brand to your friends/acquaintances/colleagues?” on a 10-point scale, where 0 corresponds to the answer “I will not recommend under any circumstances”, and 10 corresponds to “I will definitely recommend”.
2. Based on the scores obtained, all consumers are divided into 3 groups: 9-10 points - supporters of the product/brand, 7-8 points - neutral consumers, 0-6 points - critics (detractors).
3. Direct calculation of the NPS index. NPS = % of supporters - % of detractors
4. To draw actionable conclusions from the index, critics and proponents are asked the second NPS question: "Why?" Answering this question allows companies to identify their most important competitive advantages or key growth areas based on customer insights.

Story

The founder of the method is considered to be Frederick Reichheld, who first announced it in the article The One Number You Need to Grow, published in Harvard Business Review in December 2003. In 2006, he released a book called “The Ultimate Question: Driving Good Profits and True Growth”, which is known in the Russian market as “The Book of True Profits and True Growth” (2007). In it, he continued his thoughts on the topic of loyalty, profitability and company growth.

In 2001, Reichheld conducted a study of more than 400 American companies, where the main task was to measure the impact of customer loyalty (measured by NPS) on its growth rate. The main finding was that the market average NPS across industries was 16%, but companies like eBay and Amazon had an NPS of 75%. Reichheld does not say that communication is present everywhere; it is completely absent in monopolistic markets. However, industries such as airline passenger transport, insurance and car rental have become clear examples of interconnection. These companies are service companies, where customer satisfaction and loyalty depend on the level of customer service.

Many companies have become adherents of this technology, including GE, Allianz, P&G, Intuit, Apple, American Express, Philips, eBay, Amazon, etc. In the Russian market, this technology is used by such companies as BestDoctor, Rostelecom, Ozon, Insurance Group AlfaStrakhovanie, Red Cube, Megafon North-West, MTS, 1C-Bitrix, ROSNO, MIAN, TELE2, Home Credit Bank, QIWI and others.

Research on the Russian market

Research using such technology is carried out by many research agencies in Russia and abroad.

Assessing customer loyalty using the NPS index can be used in various industries: IT, financial services, construction, etc. In Russia, banks and insurance companies actively use the NPS index in their work.

In the banking industry, this approach to assessing loyalty is especially common. [ ] Some companies carry out the measurements themselves, for example using a feedback tablet. There are organizations that prefer to hire independent experts to conduct the assessment. NPS for the banking market can be calculated both for the main bank (as determined by the clients themselves) and for all banks whose services are used by consumers. [

NPS (NetPromoterScore) is an index showing consumer commitment to a company, product, or service. Otherwise, the NPS loyalty index is called the index of willingness to recommend and make repeat purchases in a given company.

As a rule, the NPS index is measured several times throughout the year and several years. Continuous measurement of loyalty allows you to effectively work to gain a competitive advantage and improve your performance.

On Questionnaire, there are a huge variety of tools for collecting respondents’ opinions through surveys - e-mail mailings to the client base, surveys among members of Questionnaire’s own panel of respondents (suitable for large companies with a branch network throughout the country), etc.

An example of calculating the NPS loyalty index

For example, you received 100 answers to your question. 10 of them were in the range of “critics”, 20 were “neutrals”, 70 were “supporters”. Subtract 10 critics from 70 supporters. You will get a number of 60. This is your customer loyalty index.

However, if an internal indicator of, for example, 33 is considered bad, then the external one (compared to competitors) may turn out to be quite high when compared with the average loyalty index for organizations with a similar (similar) field of activity.

Benefits of Measuring Loyalty Using NPS

NPS statistical indicators can be directly correlated with the company’s success in the eyes of consumers. The index is used by large (Apple, AmericanExpress, JetBlue) and small companies due to a large number of advantages:

• Speed. One question is all that is required to calculate the indicator. You can create such a survey on Questionnaire in a matter of minutes, and conduct it in a couple of days.
• Simplicity. The Net Promoter Score uses common technology so it is easy for anyone to understand.
• Comparability. You can compare your results with those of your competitors, because hundreds of companies also use NPS.

Using the Questionnaire service, it is easy to measure the NPS customer loyalty index.