Why Service Providers Should Care About Net Promoter Score

It is said that there is one simple and profound way to predict growth of a company – and that is by measuring a single customer survey question, “Would you recommend this company or its products or services to a friend or colleague?” This question, which is designed to capture customer loyalty, is the basis for the Net Promoter Score (NPS) system which was first introduced to the world in a Harvard Business Review article in 2003.

The most successful, high-growth companies have high NPS ratings

No other customer satisfaction survey question has been more closely correlated to growth, and the simplicity of the tool enables it to transcend any business, industry, or segment of our modern world. According to NPS Benchmarks, the telecommunications industry scores an average of 32, and includes companies like Google Fiber, Avaya, Verizon, and Vodafone.

Calix Services captures NPS, and we’re proud to say our customers rate us 63 for our Support Services and 74 for our Professional Services!

Why is NPS a measure of loyalty and how does it directionally predict growth? 

Recommending something is a personal act – customers put their reputations on the line to vouch for what you’re selling. These enthusiastic customers believe in you and that should never be taken lightly. By recommending your product or services to others, they leave a legacy of their delight. On the other hand, studies have shown that the average upset customer tells nine people, and in the age of social media it may be worse.

Statisticians have refined the calculation itself to tell the story of how loyalty correlates with growth by measuring the highest possible ratings and focusing on the most enthusiastic. Using the responses from the 0-10 scale and categorizing into clusters of categories of “Promoters,” “Passives,” and “Detractors” enable organizations to pave a targeted path to focus on improving its ratio by turning Detractors to Promoters. 

Calix has embraced the NPS system to help us with our never-ending journey of continuous improvement and demonstrate the dedication we have to our customers’ success. Calix is committed to encouraging feedback, and quickly directing the feedback immediately to front-line managers and employees who engage our customers directly.