How Jiffy Lube Used Its Net Promoter Score to Goose Sales
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When is the ultimate customer-service-measurement number not enough? That’s what Jiffy Lube asked recently when the company discovered that its Net Promoter Scores — a popular customer-service metric known as the “one number you need to grow” — weren’t actually helping it grow.
NPS, developed and trademarked by Satmetrix, Bain & Co. and initial author Fred Reichheld, is based on a single question: “How likely is it that you would recommend (company name) to a friend or colleague?” Customers rate the company on a scale of 1 to 10, and they are then categorized by loyalty. Those who rate 9 or 10 are “promoters”; those who give 7 or 8 are “passives,” and those who rate the company from 0 to 6 are “detractors.” NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters. NPS can range from -100 to 100 (all detractors or all promoters); and companies with “the most efficient growth engines” rate in the 50 to 80 range, according to Satmetrix.
It seems straightfoward enough, but Jiffy Lube, which has 2,000 franchised service centers, found that its scores varied widely by market. Last spring it scored a 51 in one of its major markets and a 71 in another. Its overall score was 59.
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