In this article we provide you with more information about the NPS indicator and how you can take advantage of this indicator to improve the experience in your hotel.
What is NPS?
Many times hotel managers ask themselves: What are guests saying about our hotel? Are the guests recommending it or they are just saying "Please don't book this hotel"?
Many of them recognize the importance of WOM (Word of Mouth). Hence the importance of the positive (and sometimes negative) reviews about our product or service.
The NPS (Net Promoter Score) is a metric used in the digital world whose function is to measure the probability that a person recommends a product or service, in our case, a hotel.
Here are some tips that can help you to create your marketing activities on the basis of data, not only hunches or intuitions. Let's read together!
Everything you need to know about Net Promoter Score
To calculate the NPS, guests have to answer this simple question:
How likely are you to recommend our hotel to a friend or colleague?
How are the guests' answers categorized?
Answers are on a world-known scale of 0 to 10. In the hotel industry, it is commonly used to measure guest satisfaction and their loyalty to the hotel.
Depending on the answer, the guest is listed as a Promoter, Passive, or Detractor.
Types of guests according to the NPS.
Promoter
It is the guest who evaluates 9 or 10, becoming a guest who will clearly stay again and recommend the hotel to those close to him.
Passive
It is the guest who evaluates with a result of 7 or 8, showing somewhat indifferent to the experience.
Detractor
It is the guest who delivers values between 0 and 6, thus expressing that they are not very satisfied with their stay, and worse still, the WOM will not be the one we expect.
How to calculate NPS Score?
As we already mentioned, the first thing you should know is that the NPS is measured using a numerical scale from 0 to 10, in which 0 represents that it is very unlikely that your hotel will be recommended and 10 that it is very likely.
How to calculate NPS Score?
The NPS is calculated with the following formula:
As you can see, this formula can deliver values from -100 to +100.
Example: If your hotel has a percentage of Promoters of 60% and Detractors of 10% in a month, the resulting NPS is 50, being a positive result.
An outstanding NPS is +65
Why use the NPS as satisfaction metric?
The NPS can be a great tool to monitor the satisfaction levels of your guests over a period of time and evaluate if the activities and tactics to increase the return of guests are being effective.
It also helps to evaluate the result of specific actions, such as hotel renovations
Turn the NPS into concrete actions.
If you're interested in incorporating the NPS into your toolkit for measuring your hotel's performance, there are a few things you can try. For example, incorporate surveys to your guests that contain this question. Many times incorporating an interesting article in these surveys can help the guest respond.
Another way to bring the NPS to a real thing is that once we have identified some Detractors, try to establish communication with them and find out how we could improve the services of the hotel. It is proven that assuming mistakes have been made can allow even a Detractor to give the hotel a new opportunity and perhaps turn it into a Promoter.