What is a Net Promoter Score and what does it mean for insurance customers?
Germania boasts industry-high 76.2 NPS versus national average of 44 Shopping for a new product or service can be daunting. While the internet has provided a wealth of information and resources, one thing remains true: We often find the most helpful details are the thoughts and opinions of customers who have experienced a product or service firsthand. Wouldn’t it be nice if there were a single number or rating you could use to sum up that kind of customer evaluation?
and anything over 70% indicates that a business is doing something very well or the customers are extremely satisfied and very likely to recommend to others. While these ranges are a good start, determining whether or not a company’s NPS score is “good” or not is more involved. When evaluating whether or not a company has a good NPS score, you must look not only at the individual NPS, but how that score compares to the average score for the industry. If you’re shopping for insurance – or any other product or service – be sure to not only look at the company’s NPS rating but the average scores throughout its industry. What does a Net Promoter Score mean for you? NPS can be just as useful to you, the customer, as it is to the business. Having a metric that gives you insight into the way people feel about a company can be a powerful tool when deciding which company to give your business to. First, you need to look at the average NPS industry as a whole based on what type of insurance you’re shopping for. With that industry average in mind, you can now evaluate an individual insurance carrier based on their NPS and how it relates to the industry average. Of course, there are many factors to consider when shopping for insurance beyond the carrier ’s NPS rating. However, a high score means that the carrier has taken the time to reach out to customers and get their opinion about the services and products. It also means that the customers took the time to respond and, on average, feel strongly to recommend the company to family and friends. Many companies will prominently feature their NPS rating somewhere on their website or in their promotional materials. A variety of websites also feature lists you can reference when shopping for insurance and evaluating carriers. How does Germania compare? In addition to ranking fourth in Texas for fair and efficient collision claims service by repair facilities across the state, Germania’s NPS consistently ranks as best in class. With a current score of 76.2, Germania ranks well above the industry average of 44. Germania’s commitment to fair and honest insurance protection and around-the-clock claims service has earned the praise of our most important critics: our policyholders. For more information about our insurance products, request a free quote online, or reach out to one of our trusted agents today.
It’s called a Net Promoter Score! What is a Net Promoter Score?
Have you ever seen a little window pop up after you make a purchase on a website or heard an automated message ask if you’d be willing to answer a brief question after a customer service call? These types of survey questions are commonly used for calculating what is known as a Net Promoter Score (NPS). The answers to these types of questions are used to calculate this type of customer satisfaction rating industries and businesses use to evaluate consumer opinions about their products, services, and their business. It can also be used to evaluate an entire industry. For example, you could look at a NPS for the insurance industry as a whole, a NPS for specifically the auto insurance industry, or even a NPS for a specific auto insurance company. Using a NPS, a company can get a better idea if what they’re doing is resonating with the customer base and meeting their expectations. This score isn’t just for businesses or industry leaders – it’s also for you, the customer! How is NPS calculated? Surveys are quick and easy and are often sent at various points when a representative from a company interacts with a customer. This could be after a claims call, customer service call, or after some sort of interaction on the website. A customer is asked to rank their likelihood to recommend a company, product, or service from zero to 10. After collecting a certain number of responses, a company will analyze and group the various ranked responses. The score is calculated by subtracting the percentage of people who respond 6 or lower from the percentage of those who rank 9 or 10. If a business has 20% of respondents who are 6 or below and 60% who are 9-10, you subtract 20 from 60 to get a NPS of 40%. What is a good NPS? In general, a NPS of 0% to 30% is good, 30% to 70% is great,
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