What is NPS and what does it mean to you?
If you are a NAPIT Insurance client then it’s possible you may have recently been sent an NPS survey request from us. But for those who haven’t and the term seems a little mystifying, here’s the ‘what and the why’. In short, a Net Promoter Score (NPS) measures client loyalty to a provider of a service. In this case, that would be NAPIT Insurance.
The NPS survey is based on a number of direct questions. One example might be, ‘How likely is it that you would recommend our company/product/service to a friend or colleague?’ The scoring for this answer is on a 0 to 10 scale, 10 being the highest score achieved. A client is considered a ‘Promoter’ if they respond with a score of 9 or 10. This would indicate they would be happy to recommend the service to others. Likewise on the other end of the scale, a respondent is considered a ‘Detractor’ if they respond with a score of 0 to 6 – indicating an unhappy client. A score of 7 or 8 is considered Passive.
How is the score calculated?
A company’s NPS score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e. higher than zero) is considered good, and an NPS of +50 is excellent.
At NAPIT Insurance we have been running NPS surveys on a monthly basis with numerous clients. The result after a 12 month period shows our overall score to be +54, which is an extremely positive outcome.
What happens next?
But, this doesn’t just mean that results are calculated and nothing further happens. For every result that comes back with a score of 0-6 we receive an instant notification. This then goes to the NAPIT Insurance management team who will do further work. We pay very close attention, not only to the score, but also to any additional comments within the feedback. We will then investigate any issues identified by the results. Subsequently contacting all clients directly by phone call who are considered Detractors. The main point of this direct contact with clients is to find out what we are, or are not doing to meet client expectations. We will then use this feedback to drive actions to improve and enhance our service. Or to right any wrongs that may have affected a client.
Our general response from clients to this process is very positive, and it allows them to speak freely about issues they may have. As a direct result, actions are undertaken, which will mean that over time our NPS score and client satisfaction will both increase.