A Net Promoter Score (NPS) is a widely-used market research metric that measures customer loyalty and satisfaction with a company's products or services. It is calculated based on a single question: "How likely are you to recommend our company/product/service to a friend or colleague?"
Customers respond on a scale of 0 to 10, and their responses are categorised as follows:
Promoters (9-10 score): Loyal and enthusiastic customers who will keep buying and refer others, fuelling growth.
Passives (7-8 score): Satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (0-6 score): Customers who are dissatisfied with the brand.
The NPS is calculated by subtracting the percentage of detractors from the percentage of Promoters, resulting in a score ranging from -100 to +100.
When was the NPS score developed?
The Net Promoter Score concept was introduced in 2003 by Fred Reichheld, a business strategist. Reichheld's idea was based on the premise that the most important factor in a company's growth is the loyalty of its customer base.
Reichheld's methodology quickly gained popularity among businesses worldwide as a simple yet effective way to gauge customer loyalty and identify areas for improvement. Over the years, NPS has become a widely recognised standard for measuring customer experience and satisfaction.
How does JM Finn’s NPS compare to other companies?
Consulting agency Bain & Co conducted a 2023 UK Consumer Study measuring the state of consumer experience, incorporating around 200 UK brands across multiple industries. According to its findings, the average NPS in the UK finance industry is 14.
JM Finn’s NPS score is 58, as tested in our most recent 2023 client survey of over 1,600 clients. Its score far surpasses both the UK wealth manager industry average of 28[1] and the finance industry average of 14, making it one of the best wealth managers in the UK for client propensity to recommend the firm. To put this into context in the wider services industry, it is also higher than the score of many trusted brands such as John Lewis (47) and Hilton (36).
Why is JM Finn’s NPS score so high?
According to the 2023 Bain Consumer Study, listening to customers and building a customer-centric culture are the single biggest drivers of a high NPS score. We are proud that both of these drivers are firmly embedded in JM Finn’s culture. High levels of client satisfaction and trust, excellence in communication and quality service at every touchpoint all lead to our clients recommending JM Finn to their friends and family: nearly 3 in 5 of our clients have done so, including 1 in 4 in the past year alone.
To find out more about how JM Finn could help you to simplify your financial challenges, please contact us on 020 7600 16660 or fill in the contact information form online for us to get in touch with you.
[1] Source: Savanta MillionaireVue Benchmark NPS
