Net Promoter Score & the Mortgage Industry
Let’s imagine you just made one of the biggest purchases of your life. You bought a new house and had to get a mortgage. Congratulations! The loan officer you worked with went above and beyond during the long process. She picked up the phone every time you called…even during the weekend! Her communication was impeccable and she always kept you up-to-date. You know you’ll be using her in the future if you need a mortgage, and you plan to tell your friends about her if the opportunity arises.
After the transaction was complete, you received a survey from your loan officer with the following question:
“On a scale of 0-10, how likely are you to recommend my services to your colleagues, friends or family?”
You didn’t think twice and gave her a 10 because she was a rockstar!
Without realizing it, you just completed the Net Promoter Score (NPS) question for your loan officer, providing her and her company with valuable, actionable information.
WHAT IS A NET PROMOTER SCORE?
Net Promoter Score is a metric used to measure customer loyalty, drive growth and make business decisions. But more than that, it’s a management philosophy. It’s how successful companies worldwide are choosing to run their business. Mortgage companies can use NPS scores to drive powerful business outcomes.
Your mortgage company can compute the NPS Score by asking a “likelihood to recommend” question on your customer satisfaction survey. The question, based on an 11-point (0-10) scale, separates customers into 3 buckets: Promoters, Passives and Detractors.
- Promoters (score 9-10): These brand enthusiasts are loyal to you and LOVE your product and/or the service they received. Get excited! They’ll keep buying from you AND will enthusiastically refer others to you.
- Passives (score 7-8): Your satisfied, middle-of-the-road customers. These folks feel like they got what they paid for, but probably won’t be sending any referrals your way. If your competitor offers something sparkly and new, they may get distracted.
- Detractors (score 0-6) Watch out for these unhappy customers. 🙁 They might damage your brand with negative word-of-mouth. They’re the most likely to go online and do damage to your reputation.
Subtracting the percentage of Detractors from the percentage of Promoters yields the NPS score. The Net Promoter Index score ranges from a low of -100 (if every customer is a Detractor) to a high of 100 (if every customer is a Promoter).
If you’re a SocialSurvey partner, NPS scores for your LOs, branch locations, regions (if applicable) and corporate are already being calculated.
Mortgage companies should provide front line employees access to this simple, easy-to-understand metric.
By prioritizing the Net Promoter rating, a mortgage company can inspire (and require) the company to do the right thing by its customers and employees. It’s the equivalent of the Golden Rule, but for business: Treat others as you would have them treat you. This leads to happy, loyal customers and employees.
Bain & Company, creator of the Net Promoter System
Loyal, passionate customers stay longer, spend more, contribute suggestions and sing your company’s praises to friends and colleagues. Loyal, passionate employees love working for you, come up with new ideas and go the extra mile to delight customers. That’s why loyalty correlates so strongly with sustainable, proﬁtable organic growth.
Companies in the Financial Services industry have an average NPS score of 50. Insurance industry NPS Scores average 56 on the Net Promoter Index.
SocialSurvey calculates an NPS Score for every partner client automatically. We provide an NPS score for every LO, branch, region and corporate. Our partners average a 91 NPS. WOW!
Partnering with a trusted online reputation management tool is a proven way to increase your current NPS score or calculate your score for the first time.
Is your mortgage company taking advantage of this powerful metric? What are you missing out on if you aren’t tracking your company’s NPS Score?
To find out more about the power of NPS or to schedule a demo, click here.