Loyalty, satisfaction and word-of-mouth impressions say a lot about a business. How do you measure that sort of mix? One way is through a metric called Net Promoter Score (NPS). It’s a simple survey – asking only one question – but the results are a powerful indicator of the state of a company.
Earlier this year, RE/MAX sent an NPS survey to agents in the U.S. The collective response, unveiled during the Opening General Session of the 2017 BOC in San Francisco, painted a clear picture of RE/MAX and the section of the scale it inhabits.
With a score of 71, RE/MAX ranks alongside – and slightly above, actually – contemporary leaders such as Southwest Airlines (66), Amazon (69) and Apple (70). Pretty good company, to say the least.
“RE/MAX isn’t just great; it’s amazing. And we can prove it, because we measured it,” said Tony Adams, the RE/MAX Business Growth Consultant who joined RE/MAX Co-CEOs Dave Linger and Adam Contos on stage to announce the survey results.
A simple but direct question
Determining an NPS starts with a straightforward question: On a scale of 0-10, how likely are you to recommend another real estate agent to join RE/MAX?
More than 13,000 agents offered a numerical answer, and here’s how NPS interprets those responses:
• 9s and 10s are considered to come from “Promoters” (eager to share their positive opinion)
• 7s and 8s are from “Passives” (positive, but slightly quieter about it)
• 6s and lower are considered to be from “Detractors”
Subtract the percentage of Detractors from the percentage of Promoters, and you have the Net Promoter Score.
Look at the overall results and you have a good idea of how people are judging you. In the case of RE/MAX, the positive rankings – Passives and Promoters – totaled 91%.
The leaders on stage tie the strong results to both the brand and the brokerage. The key at the local level, Contos said, is to amplify the positive wave.
“Productivity creates Promoters, and Promoters create loyalty,” Contos said. “This is amazing data. You need to activate these people and get them speaking louder.”
In the only element beyond the lone survey question, respondents are given the option to explain their assessment. Those comments can be instructive too, Adams noted, because they can help leadership shore up any gaps in service or perception. After all, Detractors can be turned into Promoters over time.
Next steps: Office-level NPS feedback
The survey generated responses from all parts of the country, and most offices had at least some participation. Data at the local level is being shared with regional teams, which are each developing their own follow-up action plans. Offices with high scores will receive reinforcement that what they’re doing is working well. Offices with lower scores – there are far fewer of those – have the chance to turn difficult feedback into an opportunity for improvement. Either way, the NPS process is providing insight on a measurable, objective scale – along with a benchmark for future analysis.
For right now, the takeaway from the BOC presentation is as straightforward as the survey question itself: RE/MAX agents are thrilled to be RE/MAX agents – and happy to tell others about it.