Written by James Charles.
Using experience gained through the ongoing development and support of our actionable member feedback system ‘Insight’ and over 4 years applying the Net Promoter Score® philosophy in our own business practices, we share with you just some of the reasons we think you need to be utilising NPS® in your business.
NPS, or Net Promoter Score, as it is formally known, is an internationally recognised measure of customer loyalty developed by Fred Reichheld of Bain & Company. This simple yet powerful way of gathering customer feedback is now commonplace in leading customer-centric organisations across industries; including our own.
Through the development of our actionable member feedback software Insight and the application of the principles of NPS within our own business practices over the past 4 years, we have seen the many benefits of the approach first-hand.
Whether you are a national chain, premium full-service club, leisure trust, medical fitness center or single-site operator; here is why we think you need to be using NPS in your facility!
1. It’s So Customer Friendly!
The more members you are hearing from, the better an understanding of your membership base you are getting and the more reliable the data you are using to make key business decisions (which we will talk about next).
Rather than burdening your customers with the dreaded multipage questionnaire 🎃, seemingly never-ending and often yawn-inducing: NPS asks just one simple question which takes seconds to answer. As consumers ourselves, we can all agree that we are much more likely to spare a few seconds of our time to share our thoughts than dedicate minutes trawling through page after page of questions, not knowing when it is going to end.
2. It Can Give You Invaluable Data Which Will Enable You to Make Informed Business Decisions and Confidently Allocate Resources and Spend
As mentioned above, NPS allows you to tap into the brains of your most important stakeholder group (your customers!) and gather data which can be used to direct those big decisions which you need to get right.
Two great examples of this in action are activeNewham in the UK and premium American club, Fitness Incentive; who both utilise the Net Promoter Score functionality within our actionable member feedback system Insight.
In 2016, Insight told activeNewham’s management team that waiting in line at their reception desks was impacting the member experience in their centres. Off the back of this feedback, they made a £400,000 investment in a new cashless kiosk-based system which eliminated the problem completely within just a month of implementation!
With member feedback showing their group cycling classes were not matching up to the exceptional experience delivered across the rest of their facility, US operator Fitness Incentive dived into their NPS comments to find out what specifically needed changing. They were able to confidently invest in a revamp of the studio space and its equipment, knowing that these individual elements were responsible for the negative trend.
3. It’s An Ongoing Measure, Taking the Pulse of Your Club in Real-Time
Rather than a once a quarter or annual survey send which gives you a picture of your club at a single point in time, quickly becoming out of date and requiring an incredible amount of hands-on analysis and follow-up from you and your staff in a short period of time; NPS provides a steady flow of timely, relevant, actionable feedback.
4. It’s Easy to Understand and Simple to Use
As well as being customer friendly, NPS is user-friendly for you too. A straightforward, logical way of measuring loyalty at scale, it will take you just minutes to understand – we wrote a blog post about it which you can read here. This means a hockey-stick-style learning curve so new staff can get up and running super-quick.
5. It Enables You to Identify and Harness the Power of Your Raving Fans
Turn your raving fans into active brand advocates. A 2015 study conducted by Neilsen shows that 83% of people trust recommendations from friends and family and 66% of people trust recommendations from others posted online. NPS can give you a stream of great free content to populate your website and social media pages so that you can amplify the voice of your members to the world, taking that daily social media post creation task off your marketing team’s list in the process!
6. It Allows Benchmarking of Organisation and Individual Site Performance at a Glance
As highlighted by Fred Reichheld himself in his 2003 Harvard Business Review article The One Number You Need to Grow, using Enterprise Rent-A-Car as an example, an agreed, uniform measure of customer loyalty, such as Net Promoter Score, allows site and organisation-based benchmarking, making it possible to assess performance within the industry or between sites in your chain, at a glance.
Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.