What is my Net Promoter Score?

The very first question your guests are asked in any GuestRevu survey is simple – How likely would you be to recommend us to friends and family?

This question is used to determine your property's Net Promoter Score (NPS), which can be used to gauge your customer loyalty, and serves as an alternative to the traditional overall satisfaction rating. Some companies have found a correlation between their NPS and their revenue growth.

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Each guest will be asked how likely they would be to recommend your hotel to a friend on a scale of 0 to 10, with 0 being the lowest rating and 10 being the highest. Based on their rating, guests are then classified into 3 categories: detractors(0-6), passives(7-8) and promoters (9-10).

 The Net Promoter Score is determined by subtracting the percentage of guests who are detractors from the percentage who are promoters. The resulting number between -100 and 100 is your NPS.

Dashboard - Net promoter score

 

Why use NPS?

Knowing your hotel’s Net Promoter Score puts the ball in your court to either make the necessary changes to improve your standard of service, or build on your current practices to ensure guests keep coming back.

There are a number of benefits that arise through analysing and improving your NPS, such as:

  1. Improved profit margins – promoters aren’t as price-sensitive as other guests, as they see great value in the services your hotel provides. Detractors tend to think they’re getting a raw deal. What cost-effective measures can you introduce to add value to your existing service?
  2. A higher guest retention rate – detractors tend to defect at much higher rates than promoters, which means a shorter, less profitable relationship with your hotel. Does your staff need interpersonal training? Are there little touches you can add, like chocolates on a pillow or fresh flowers in a room, that will enhance your guest's experience? Focus on ways to turn detractors into promoters in order to retain guest loyalty and boost profits.
  3. Greater cost efficiencies – promoters stay for longer periods and help generate solid referrals, thereby reducing customer acquisition costs. Detractors have more complaints and tend to consume more service resources.
  4. Higher annual spend – promoters spend more, more often, than detractors and group their spending with one trusted supplier – you. As far as possible, your hotel should be a one-stop-shop for guests. Why give them a reason to go elsewhere when you could introduce new offerings?
  5. Greater word of mouth – it goes without saying that promoters can contribute a great deal of new business, while detractors can drag your name through the mud. Give guests something great to talk about, make their stay with you memorable, and you’ll have a promoter to sing your praises to the masses. It’s usually a lifetime value.

The Net Promoter Score (NPS) was developed by Fred Reichheld, Bain & Company, and Satmetrix, and is a registered trademark.