The number to pay attention to in your business decisions
What is Net Promoter Score?
Net Promoter Score, or NPS, is a customer experience metric that measures the loyalty of customers to a company. It is considered the most meaningful measurement for aggregating customer experience scores.
The metric was introduced by creator Fred Reicheld in a 2003 Harvard Business Review article, “The One Number You Need to Grow.”
How is NPS calculated?
NPS is calculated based on one simple question:
"On a scale of 1-10, how likely is it that you would recommend us to a friend or colleague?"
The scores are divided out as:1
NPS is the difference between the percentage of promoters and percentage of detractors. The lowest possible score is -100 if every customer is a detractor. The highest possible score is +100 if every customer is a promoter. Both a -100 and +100 are unrealistic and rare.
Why it’s important to consider NPS in business decisions
As a decision maker, you’re constantly thinking about the best interest of your employees. By looking at a company’s NPS, you can see all the ingredients that go into the entire customer journey. NPS is an important number in your decision-making process, as it’s a good indicator of how easy an organization is to do business with.
When looking at potential business partners for your organization, you should consider:
- What is their reputation?
- What do others say about working with them?
- What do employees say about working at the company?
- How accessible are they when you have service issues?
- What’s their expertise in your industry?
- How do your goals align with their goals?
“There are many things you can assess, but whether someone will recommend you is the loyalty we want to measure.” Larry Alkire, Chief Customer Experience Officer.
What is American Fidelity’s NPS?
At the end of 2021, American Fidelity’s NPS was 56. On a scale from -100 to +100, this is considered an excellent score. According to research, it’s up there and often exceeding big brands who maintain strong followings.
Having NPS in place allows us to elicit verbatim feedback and then set objectives and goals accordingly. We pick things our customers are telling us could be better and make them focus areas to help us improve.
“We have a secret hall of shame list which comes from customer feedback. We take those things and work on them; a good experience is everything.” Larry Alkire, Chief Customer Experience Officer
Companies With High NPS Scores 2
What does American Fidelity do differently?
Compared to other organizations in the insurance space, American Fidelity’s NPS soars above. So, what do we differently?
American Fidelity is obsessed with the customer experience. From onboarding to annual enrollment and strategizing on current HR issues, we pay attention to the smallest details. We know every interaction shapes our reputation and our customer retention.
We recognize customer service is transactional, and customer care is not. The warmth people feel when they interact with us is powerful.
“Warmth is tied to experience. It’s part of our culture to care deeply about the people who do business with us. To me, it’s about having a passion for customers and believing that we’re here for a purpose to help people.” Larry Alkire, Chief Customer Experience Officer
We’re a solution provider and partner to the niche customers we serve. We don’t just say we’re a different opinion. We are a different opinion.
This blog is up to date as of September 2022 and has not been updated for changes in the law, administration or current events.