Developed in 2003 by Bain & Company’s Fred Reichheld and Satmetrix and popularized in the 2006 book titled “The Ultimate
Question”, the Net Promoter Score (“NPS”) represents a very different way of measuring satisfaction and loyalty. Unlike other measurements,
including “Top Box” ratings, “Top Two Box” ratings and Mean Averages, the NPS measures both those who really like you (“Promoters”
or Advocates) and those who don’t (“Detractors”).
The NPS, calculated by subtracting the percentage of Detractors from the percentage of Promoters, has been applied by companies
and other organizations in most industries throughout the world, but only to the “Likelihood to Recommend” question.
Guest Research has worked with this metric for six years, and four years ago developed a revolutionary new guest satisfaction
measurement system for the ski resort industry based entirely on the NPS. This system is now available to all resorts, hotels
and other organizations.
A few of the many advantages of the Net Promoter Score methodology are listed below:
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Measures loyalty, not just satisfaction
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More sensitive to performance changes, even minor ones
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Focuses on increasing an organization’s Promoters and decreasing its Detractors
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Directly supports higher repeat and referral business
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Increases positive reviews in online travel review sites
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We have learned how to “move the NPS needle”, by increasing the “Promoters” and/or decreasing the “Detractors”. This consultative
support is complimentary to our research clients.
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