For any of us who are in the customer loyalty business – that is, continuously working on our portfolio, our strategic initiatives, services and offerings to deliver more value to members, NPS helps net out the customer experience.
There are studies that show a direct relationship between satisfaction and value. If a member is satisfied with a service or offering that’s relevant to their business, that relevance leads to value. And studies also show a correlation between value and loyalty.
Perhaps you’ve heard about Net Promoter Score (NPS) or not.
NPS gauges member perception in a way that helps offer a consistent measurement to inform your frame of reference as you consider your go-forward strategy.
nSight Marketing is conducting a member survey across associations. The Insight 2020 member survey is unique in that you’ll learn where your members rank on variety of satisfaction and loyalty-related questions – including Net Promoter Score. We’ll observe the range of associations rankings so that you can benchmark for yourself. We won’t publish association names.
Learn more about the Insight 2020 Member Survey at www.nSightmarketing.com/Insight. Last day to sign up is March 2, 2020.
Our goal is to help associations get a glimpse into member perception across a variety of associations, including diverse sizes, locations and even age and member type. We’re adding the Net Promoter Score to this research project because it’s one objective rating we can use across associations.
What NPS is.
Net Promoter Score was first developed in 1993 by Fred Reichheld and later adopted in 2003 by Bain & Company and Satmetrix as a way to predict customer purchase and referral behavior….NPS is designed to measure your customer’s overall loyalty to your brand.*
Sametrix explains that NPS is a tool that can make sense of the bigger picture of customer loyalty. The NPS portrays how the company is doing on the whole.
NPS is a unique tool.
The NPS uses a single question: “How likely would you be to recommend (company/ organization) to a friend or colleague?” It’s ranked on an eleven-point scale, that ranges from “0, not at all likely to recommend” to “10, extremely likely to recommend.”
With our research project at nSight Marketing, we will build on the Net Promoter Score by adding a short set of ranking, quantitative and write-in questions to help give you more details and perspective on different functions inside your association.
Bain and Company, a global management consulting firm suggests: “Asking the ultimate question, NPS allows companies to track promoters and detractors, producing a clear measure of an organization’s performance through its customers’ eyes.” A Bain analysis shows that sustained value creators—companies that achieve long-term profitable growth—have Net Promoter Scores (NPS) two times higher than the average company. (The range of Net Promoter Scores across industries is referenced below.)
What the responses mean.
Net Promoter Systems explains the responses in three categories:
In a McKinley Advisors study, they report that the NPS score for associations averaged 21. This ranking “falls within the bottom one-fourth of industries…and is substantially lower among younger members – a group that is critical to the future of associations but that is also well-known for being hesitant to join professional societies. At an average score of 21…the Association results are also somewhat sobering when compared to for-profit industries.”
If you’d like to see the full industry ranking there is a link to the report at the end of this blog.
So first things first: let’s collect some data. Once we have the results, you’ll have information to help you decide what happens next.
For more information and to be part of the Insight 2020 research project, click here.
March 2, 2020 is the last day to register.