Decoding the Net Promoter Score? Does it increase revenue

Net promoter scores is a popular way to gauge guest sentiment in many hotels.

It builds on the premise that if you have a happy guest, he will recommend the hotel to his friends and acquaintances and the business improves.

Net promoter score is quite popular in many hotels. It is marked on a scale of 1 to 10 and the methodology is 0 – 6 are Detractors, 7 and 8 are Passives and 9 and 10 are Promoters.

Studies find that people who mark 9 and 10 are happy with the brand and much likely to recommend.

In this day and age where Relationship marketing plays a major role, we must understand how this helps you increase revenue over all for your business.

Basis of scoring.

So while your hotel can have many questions in the survey, for calculating Net Promoter Score only one question is taken into account.

How likely is it that you would recommend our company/product/service to a friend or colleague?

Data is tabulated by taking the following formula

So while passives are not used in the score, the use of passives in the total no of responses reduce the score.

Using just 1 question however does not give the complete picture so hotels ask multiple questions to understand the impact of the various departments and try and come up with problem resolution.

The system also allows you to follow up with guest who marked you low and try and change them from Detractors to Promoters.

So how does it help to increase revenue?

In this day and age of Social media, people are more likely to act on recommendation of people they know rather than promotional messages from brands.

Creating promoters have a benefit of using the power of relationship to promote the hotel.

Promoters also help reduce your marketing cost as more people become aware of the brand and your marketing money can be spent of retaining your existing guest with more benefits.

It goes hand in hand with other customer acquisition and retention strategies.

How to increase Net Promoter Score?

For any thing to change, you need to put systems in place. Change is painful specially if not managed actively.

In order to improve your score, systems need to be set to ensure that the teams are re engineered to work as a cross functional team and not in silos as hotels are currently structured.

If your end goal is guest satisfaction and Intent to recommend, you and your team needs to brainstorm what will make guest happy and then what should each team in the hotel do to deliver on the promise.

Once you have identified, you need to train your team to deliver on the promise.

Consistently training your team to deliver around your core promise will help create consistent guest experience and over time your scores will improve,

Close the loop with a complaint resolution model to help solve or reduce complaints in the hotel.

Conclusion:

Net Promoter Scores are an easy metrics to improve guest satisfaction and improve relationship selling.

Promoters are advocates, Detractors are people who are unhappy with your hotel.

Train your team to deliver exceptional guest service and identify guest issues and resolve them.