The Net Promoter Score is a proven method to determine customer loyalty and satisfaction. According to CustomerGauge, the average NPS for logistics companies is +38. Transportation and logistics companies benchmarked on Customer Guru showed an NPS range from +8 to +11.
Red Stag Fulfillment first did a Net Promoter Score survey in December of 2017. At that time, its NPS was +81. Since then, our NPS score has hit a high of +97 in 2018 and a low of +79 in 2019.
Our goal is to maintain an NPS of at least +80. In five surveys between 2017 and 2020, Red Stag’s average NPS has been +84.8. That is a sky-high score for any industry. But, when we look at logistics benchmarks, it’s more than double what a typical 3PL might achieve.
Matt Novak, one of the key players on Red Stag’s Customer Support Team, credits Red Stag’s proactive customer service with the high NPS. “We’re not perfect,” he said, but “we see ourselves as an extension of our clients’ businesses.” When there is an issue, he said, “Normally, we tell the client before they come to us.” This allows Red Stag’s clients to alert their customers to a problem even before the package is delivered. Both our clients and their customers appreciate this above-and-beyond customer service.
What Is a Net Promoter Score?
The Net Promoter Score (NPS) survey was developed about 15 years ago. It is a valuable metric for predicting growth. Long customer satisfaction surveys often have low response rates. Plus, they don’t produce reliable results.
Instead, the NPS asks one basic question: How likely are you to recommend our services? Clients answer on a scale of 1 to 10, with 10 being the most likely to recommend.
The theory behind NPS is that the best predictor of the health and growth of a company is how many customers are enthusiastic enough to promote it to others.
Every survey respondent who gives your company a rating of 9 or 10 is labeled a promoter. People who give scores of 7 or 8 are considered passive. Those who answer 6 or below are labeled detractors.
Neutral responses don’t count toward the NPS. To calculate the Net Promoter Score, take the percentage of promoter responses and subtract the percentage of detractor responses. For example, let’s say 75% of your respondents were promoters. If 5% were neutral and 20% were detractors your NPS would be +55. The score is expressed as a number, not a percentage.
Red Stag NPS Survey Methods and Results
In June 2018, Red Stag reached out to 325 people, covering all of our clients. We received responses from 46% of our clients. The respondents represent clients who account for 62% of our revenue.
Among our responses to our June 2018 survey, all but one of the responses were promoters; there was one passive response and no detractors. This gave Red Stag an NPS of +97. Our average NPS score is +85, which is more than 30 points above the industry average.
What Clients Say about Red Stag
Kudos came in along with the NPS survey responses. Here are some of the things our clients have said about us.
“Flexible, timely and professional service. Also has an incredible tech integration, very flexible, and a very low error rate.”
- Furniture manufacturer
“The entire RSF team, from account management through receiving and kitting, has been incredibly responsive regardless of the urgency of the request. Communication is timely, friendly and detailed. The entire team goes above and beyond to ensure a smooth and simple process.”
- Outdoor toy company
“1. Extremely high-quality customer service. Even special requests are accommodated, and we always hear back promptly about any issues we raise. 2. Extremely low error rate by RSF. Unlike Amazon, you haven’t damaged or lost any of our products.”
- Medical device maker
“The guys who manage our account do an absolutely fantastic job, both in responding to issues but in also proactively looking for ways to do things better.”
- Air conditioner manufacturer
“After years of disappointment with other order fulfillment companies, we are finally confident that we have chosen the one we can trust to properly manage our inventory and shipping requirements.”
- Home supply company
“Red Stag’s promise to current and future clients is to keep providing the stellar service that turns clients into promoters.”
