What is Net Promoter Score (NPS)?
Net Promoter Score (NPS) is a guest experience metric that gauges customer loyalty. It is calculated based on the response to a single question: "On a scale of 0-10, how likely are you to recommend our vacation rental to a friend or colleague?" Respondents are categorized into three groups: Promoters (score 9-10), Passives (score 7-8), and Detractors (score 0-6).
The final NPS score indicates the overall sentiment of a host's guest base.
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How it works
To calculate NPS, a host first surveys their recent guests with the standard recommendation question. Responses are then segmented into Promoters, Passives, and Detractors.
The percentage of total respondents who are Detractors is subtracted from the percentage of total respondents who are Promoters. For instance, if 60% of guests are Promoters and 10% are Detractors, the NPS is +50.
This score, which can range from -100 to +100, provides a clear benchmark for guest loyalty. To gather this data effectively, hosts can use the automated messaging features within a property management system like Lodgify to schedule and send NPS surveys via email a few days after a guest checks out.
Why it matters
NPS provides a simple, standardized way for vacation rental owners to measure guest loyalty and predict business growth. A high score is strongly correlated with repeat bookings and positive word-of-mouth referrals, which are crucial for building a sustainable business.
By analyzing the follow-up feedback from Detractors and Passives, hosts can identify specific pain points in the guest experience and make targeted improvements. This metric helps hosts move beyond simple star ratings to understand the true advocacy potential of their guests.
Examples
- A host notices their NPS has dropped from +45 to +20. After reviewing the qualitative feedback, they see several Detractors mentioned slow Wi-Fi, prompting them to upgrade their internet service and router immediately.
- A property manager with a consistent NPS of over 70 includes this data in their marketing materials for new property owners, using it as proof of their ability to deliver exceptional guest experiences.
- After receiving several 'Passive' scores of 8, a host reaches out for more details and learns that guests found the check-in process slightly confusing. They create a new digital guidebook with step-by-step photos, leading to more 'Promoter' scores in the following months.
- A host identifies that their 'Promoters' consistently praise the welcome basket of local goods. They decide to double down on this feature by partnering with more local artisans, further enhancing their unique selling proposition.
Frequently asked questions
What is a good NPS score in the vacation rental industry?+
How is NPS different from an average review score from an OTA?+
When is the best time to send an NPS survey to a guest?+
Should I only pay attention to the final NPS score?+
Related terms
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