NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. It is used to gauge customers’ overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.
Used well, NPS is a listening tool that we use to create an environment that inspires our team to deliver great experiences. It’s a basis upon which to build a business that stands for something. Its impact cannot be trivialised. It’s so much more than two questions.
Ray White implemented the NPS methodology as our ‘listening device’ for customers over ten years ago. Although many Fortune 500 companies now use NPS, the concept was relatively new back then – we were one of the first Australian companies to introduce it.
Each client who has sold or purchased a property with us is asked to rate on an 11-point scale the likelihood of recommending us to a friend or colleague. “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?” Based on their rating, customers are then classified in 3 categories: detractors, passives and promoters. Promoters are anyone that gives a rating of 9 or 10, passives give ratings of 7 or 8, and detractors are people that give anything lower than 7. A score between -100 and 100 is generated from the results.
Over the past decade, the learnings of the NPS program have been immense for Ray White and our team. It has reinforced those areas of service we knew were important, especially around timeliness and transparency of communication. Equally, it highlighted areas that we didn’t appreciate were important to the whole experience, such as pre-settlement services. The program has also confirmed to us that what was considered great service just a few years ago will need to improve to be seen as great this year.
Generally speaking, a Net Promoter Score that is below 0 would be an indication that your business has a lot of issues to address.
A score between 0 and 30 is a good range to be in, however, there is still room for progress. If your NPS is higher than 30 that would indicate that your company is doing great and has far more happy customers than unhappy ones.
An NPS over 70 means your customers love you and your company is generating a lot of positive word-of-mouth from their referrals.
At Ray White Lower North Shore Group, our NPS rating for May 2022 was 96.8. We are very proud of this and we always strive to deliver the best possible results for our clients and ensure that each client’s experience of buying and selling with our team is positive.
If you would like to talk to Lewis about your real estate requirements and find out more about how we use NPS, please get in touch.
Lewis Adams
Senior Sales Advisor LREA
+61 413 572 441
lewis.adams@raywhite.com
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