Decoding a Viable Metric for Measuring Customer Loyalty in Travel
Photo Credit: Southwest Airlines was ahead of the airline industry so far in 2019 with the highest Net Promoter Score of 71, according to NICE Satmetrix research. Southwest Airlines
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Loyal customers may love your product and service, but the goal is to get them to spread the word. Here's everything you need to know about Net Promoter Score and how to retain, grow, and convert brand advocates.
The so-called performance metric Net Promoter Score (NPS) has certainly faced some scrutiny, but with over two-thirds of Fortune 1000 companies using it, no one can deny the wide adoption by brands of this “one number you need to grow.” It’s definitely a number that is taken seriously by many industries.
Travel is no exception. Research done in 2019 by NICE Satmetrix in its U.S. Consumer Net Promoter Benchmark report, surveying 68,000 respondents and covering 23 industries, revealed that in the travel sector, airlines have been leading with an average NPS of 39. Hotels follow with a score of 36, and travel websites have an average of 18.
Knowing your company’s NPS is great, particularly when it acts as a benchmark to competitors, but actually understanding the reasons behind the score is where the secret lies.
How to Measure NPS
“The one number you need to grow” became widely known in 2003, released in the Harvard Business Review and coined by Frederick Reichheld. I
