Verne Global

Industry | Iceland | Insights |

23 August 2017

Customer Satisfaction and the Net Promoter Score

Written by Tom Squirrell

Tom is Verne Global's Director of Customer Success, and is based at our London headquarters.

The Net Promoter Score (NPS) has been around since 2003. It was designed as a way of measuring how effectively a business is winning the loyalty of its customers. At Verne Global, it's a central tool in how we measure our performance, and our customers' satisfaction.

The goal of NPS is to improve on existing customer-satisfaction surveys by providing a quick way to bring data about customer loyalty to front-line operations. In contrast to other types of customer satisfaction surveys, which tend to be complex and involved, the NPS provides very specific insight based on just one very straightforward question:

What is the likelihood that you would recommend our company to a friend or a colleague?”

Respondents answer by providing a number one through ten, with ten being the highest possible score. As shown in the illustration below, depending on their answer to the question above, a customer is placed into one of three categories: Promoters – 9 or 10 / Passives – 7 or 8 and the remaining Detractors – 6 or less. After gathering this information, subtract the percentage of “Detractors” from the percentage of “Promoters.” The resulting number (between -100 and 100) is your company’s Net Promoter Score.

So what’s considered a good NPS? Generally, an NPS of over fifty is considered “Excellent,” while a score of over seventy is considered “World-class.” The average is considerably lower. In an article in the Harvard Business Review entitled, The One Number You Need to Grow, Fred Riechheld (the creator of NPS) found that the average Net Promoter score from a sampling of four-hundred companies across 28 industries was a meagre 16. According to a research study conducted by market research firm the Temkin Group, the average NPS in the technology services industry is 31.8.

So why are we telling you all of this? When I joined Verne Global I was amazed at the scores received from individual service tickets. As I write we are at 99.4% very satisfied with all of our tickets being surveyed for a full 365 days operation. I asked our CEO, Jeff and our CTO, Tate why we weren’t putting this kind of information in our shop window and today sees the response to that question - check out our dedicated Customer Success page here. I went on to recommend our own NPS survey so that we could benchmark ourselves not only against other data center providers but against service legends worldwide. The survey came back with a massive 100 score. If you re-read the paragraph above that puts us firmly as “World Class” and we are justifiably proud of that.

Although the NPS can be a valuable guidepost for building stronger customer relations, it isn’t a silver bullet to building solid customer satisfaction. Deriving the best NPS scores requires vigilance. Companies should connect with customers personally throughout the year to gather NPS data, measure the scores over time, and respond quickly based on the perception of their services.

No single metric can guarantee customer satisfaction, but in companies like Verne Global that have a long-standing commitment to providing outstanding service, NPS can be a valuable tool in gauging satisfaction and ensuring that clients feel listened to and valued.

What makes the experience with Verne Global so special is the Icelandic approach to practicality and 'getting things done'. All of the Operations team have a wealth of experience in data center management and take great pride in going the extra mile. Anyone who has visited the data center is welcomed with a beaming smile from Karolina, our superb Office Manager and leaves knowing that their investment in Iceland is in very safe, world-class hands.

So what is our next goal? Maintain that 100 NPS score as seriously as we got it in the first place.

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