Have you heard of a Net Promoter Score (NPS)?
The 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 our best leaders use to create an environment that inspires their 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.
At Ray White, we 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 was bought or sold a property through us are asked to rate on an 11-point scale the likelihood of recommending the company or brand 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. A score between -100 and 100 is generated from the results.
Over the past decade, the learnings of the NPS program have been immense. 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.
At Ray White Carlingford, we have an NPS rating of 97. Considering any score above 20 is considered favourable, anything above 50 is excellent, and above 80 is world class, we are very proud of our NPS rating. We always strive to deliver the best possible results for our clients and ensure that each client’s experience of buying and selling real estate is positive.