Customer willingness to recommend
Net Promoter Score (NPS)
Net Promoter Score is all about measuring how well your brand is ‘delivering’.
It’s a crucial tool in identifying areas for improvement, understanding your overall business performance and how perceptions of your brand are evolving.
NPS, is often used in Customer Satisfaction Surveys and is one of the 8 metrics that we use to evaluate brand equity and is an integral part of our brand tracking. This particular metric measures customers’ willingness to recommend a company, product or service to a friend. Essentially, it’s a customer loyalty metric.
Initially developed in 2003 by Fred Reichheld, Bain & Co and Satmetrix, to help companies earn customer loyalty and inspire employees, the Net Promoter Score is an important part of consumer research. Research carried out by Nielsen supported the metric, confirming that word of mouth is the most influential element of consumers’ purchasing decisions.
Why is NPS important?
Net Promoter Scores are often great predictors of business growth. If your score is higher than the industry average, it indicates you have a healthy relationship with your customers – you have a base of loyal fans.
How does NPS work?
We’ve all heard it a million times before, ‘On a scale of 0 – 10 how likely are you to recommend this product to a friend?’
One seemingly simple question, yet it is often the culmination of a complex series of personal perceptions, opinions, instincts and past experiences. Recommend a product or business to a friend and you are giving it your own, personal seal of approval – you are effectively a brand ambassador, a promoter.
For businesses, it’s a hugely important indicator of how they are perceived by those that matter the most – consumers.
Understanding Promoters, Passives & Detractors
Net Promoter Score, categorises your customers into 1 of 3 groups; Promoters, Passives and Detractors. The higher your NPS score, the more promoters your brand has.
It’s easy to focus on the customers who seem to be the ‘biggest fans’(e.g. the Promoters). But, it’s also important to pay close attention to the customers who may be ‘Passive’ or ‘Detractors’ too.
Passives are on the cusp of being promoters, so it is worth exploring how to improve their experience and perceptions so you can improve on future scores. Engage with your customers – ask them questions like “what could we do better?” Increasing your number of promoters will boost your brand health.
Detractors also require close attention. If someone is actively dissuading others from using your brand, they could sway a passive or convert a promoter.
Benefits of Net Promoter Score
- NPS is one of the easiest and cheapest ways to track your brand’s performance.
- You can track your scores over time, making it a great benchmarking tool.
- NPS focuses on customers’ opinions. It encourages consumer engagement and helps your brand to develop a relationship with your consumer.
- By following up with probing questions within your NPS survey, you can explore ‘why’ consumers have given their score.
Drawbacks of Net Promoter Score
While NPS is a long-standing valued metric tool, it isn’t always seen as the best way to depict loyalty from customers. This is because, in more recent years, new tools have been introduced which can provide a better indication of success. For example, BrandVision has a metric called ‘Momentum’ which could be argued to be a better way of viewing a brands market position and potential to beat competitors.
Alternative NPS Brand Metrics
Running brand tracking surveys over time will allow you to spot trends over time and allow you to take action quicker. But you’ll need to measure more than brand metrics if you want truly actionable research, so Welcome to BrandVision.
Tab Contents
Welcome to BrandVision
Metrics to Turbo Charge any Brand Strategy
BrandVision is our flexible brand evaluation system that can be customised to your required to your needs. From self-serve to fully managed BrandVision offers tracking for brands of all shapes and sizes.
BRAND MOMENTUM
Discover the power of Brand Velocity.
Brand Velocity is part of Brand Momentum theory and refers to the growth potential for your brand and its likely future trajectory. Velocity measures the extent to which your brand is seen to be growing or declining.
Brand Momentum is a KPI driven by your marketing investment, product availability, brand image and your brand proposition and positioning.
Brand Momentum is a better indicator of growth than virtually any other consumer metric. Its role is far more important than the highly regarded Net Promoter Score because it is a better predictor of growth and growth potential than any other brand metric.
Brand Magnetism
Awareness alone is pointless if your brand doesn’t possess Brand Magnetism.
Part of the Brand Funnel, Magnetism refers to the attraction your brand has with the target market.
There are two aspects to brand Magnetism. Firstly the strength of appeal and interest in the brand. Secondly, it is about the segments and groups interested in the brand. Understanding who and who isn’t interested in your brand is the first step in creating a strong marketing and brand strategy.
Brand Magnetism is the holy grail for many brands as it is often associated with some of the best and most iconic brands in history.
Brand Fame
What is Brand Fame?
Brand Fame (also known as brand leadership) is one of the key metrics that indicate whether or not your brand has a USP and is seen by consumers as a ‘Leader’, ‘Different’ or ‘Characterless’.
There are two very important aspects to Brand Fame: Uniqueness & Leadership, Brands that have neither of these attributes tend to struggle, with little to set them apart from their competitors.
A great example of this is people’s desire to own the Apple brand. The high levels of Fame (Distinctiveness and Leadership) correlate highly with Brand Love and Consumer Loyalty – which ultimately has helped drive Apple’s dominant position in the market.
Brand Love
The Power of Love
The concept of Love in brand relationships has been receiving immense and escalating attention. It is considered by many experts as the essential ingredient for capitalising in today’s new order.
Brand Love underpins the consumer-brand relationship. It’s not an emotional or fluffy metric but rather the holy trinity of brand metrics, combining three powerful metrics: Relevance, Need and Trust.
Evaluation of brand tracking data has taught us, time and time again, that Relevance is arguably the most important metric of all – and is highly correlated with consumer behaviour.
NET PROMOTER SCORE
The Recommended Metric
Net Promoter Score was initially developed in 2003 by Bain & Co to help companies earn customer loyalty and inspire employees,
NPS is an important part of consumer research for many companies as it is a measure used to gauge customer loyalty, satisfaction, and enthusiasm for a company
Further research carried out by Nielsen has supported the metric, confirming that word of mouth is the most influential element of consumers’ purchasing decisions.
Awareness & Mindshare
The Battle for the Mind
Many marketers believe Brand Awareness is a single metric – in truth, it’s a lot more complex than that! As experts in brand awareness measurement, we’d like to explain why.
Behavioural Economics has shown the importance of Availability Bias and that winning customers’ choices means being front of mind. Brand Awareness metrics include; Prompted Brand Awareness, Brand Recognition and Brand Recall. Together we call it Mindshare.
BRAND HEALTH
8 Secrets to a Healthy Brand
- The 8 Essential brand image metrics are:
2. Ethical – Are you seen to be doing the right things?
3. Brand Identity -Does your Brand identity have Clarity?
4. Brand Noise – is your brand Grabbing people’s Attention?
5. Newsworthy – Is your brand worth talking about?
6. Outstanding – Do you offer exceptional Quality or Value?
7. Variety – Is your brand flexible and have multiple uses or benefits?
8. Accessible – Is your brand Readily Available and Convenient?
On Trend – Is your brand Topical & Current?
NEEDS SOME HELP?
To us,the Net Promoter Scores is a part of the bigger picture. That’s why we developed our forward-thinking Brand Equity Wheel evaluation tool – assessing every aspect of your brand’s health, including needs, mindshare, value, fame, emotion (and Net Promoter Score). It’s a key part of our market-leading, strategic brand tracking service, BrandVision. The result? A final metric score that can be used strategically to drive sales, market share and growth.
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