NPS: What is it, and is it Important for Tour Operators?

18 Aug 2016     |    Taz Bareham

As a tour and activity provider, you need to know if your past, present and future customers are loyal to your brand. If they are traveling to your destination again, will they book a tour with you or will they head to the competition? If they have friends heading to that region of the world, will they recommend your company to them? Customer loyalty is critical to your overall success in the travel industry, and measuring that loyalty is necessary. One of the most effective metric to use is the Net Promoter Score.

What is the Net Promoter Score?

The Net Promoter Score — or NPS — is a score that provides insight into customer loyalty. Introduced by Fred Reicheld in 2003, this score can measure the amount of loyalty between a tour operator and the traveler who books their products. The scores range from -100 to 100, and any score above a 0 is considered to be a positive, loyal relationship between the service provider and the consumer. Any tour operator that achieves a score of higher than 50 is considered to have excellent customer loyalty.

The best part about utilizing the NPS is that it’s easy and revolves around one simple question. The question that needs to be asked of each customer is “How likely is it that you would recommend our company and our tours to a friend or colleague?” Your customers respond on a scale of 0-10, with 0 being the least likely and 10 being the most likely. The score is calculated by subtracting the percentage of detractors (those who respond with 0-6) from the percentage of promoters (those who respond with 9-10). Passives (those who respond with 7-8) are counted toward the total responses but do not impact the NPS.

Is it Important for Tour Operators?

Yes. It is perhaps one of the most important metrics for tour and activity providers to measure, because it objectively measures tour satisfaction. It will give you insight into whether your tours are exceeding your customers’ expectations, or missing the mark overall. Ultimately, utilizing the NPS, you can adjust your tours and activities in order to meet the needs of your customers and grow your business into the future.

If you would like to better understand the amount of loyalty that exists between your customers and your tour brand, the time is now to start using the NPS. You can ask your customers to fill out a form with the NPS question on it immediately after the tour, as this is the ideal time to get objective feedback on the experience. If that is not the best option for your particular products, consider sending an automatic e-mail out a day or two after the tour is complete.

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