Keeping an airline in the air has proven to be incredibly difficult. Managing on-time performance, aircraft fleet maintenance, regulatory compliance, and route network expansion.
These are just a few of the variables that must be met while dealing with high operational costs and worldwide economic conditions. While airlines strive to enhance profits, passenger comfort and in-flight amenities are frequently disregarded.
What is NPS in aviation, and why do airlines use it?
Understanding consumer satisfaction has never been more important in the fiercely competitive airline sector, where passengers have a limitless number of choices and ways to express their opinions.
Net Promoter Score (NPS) is an effective statistic for assessing consumer loyalty and satisfaction by asking the simple question: “How likely are you to recommend this airline to a friend or colleague?” Growth was predicted significantly and positively by asking individuals how many times they had recently suggested a company.
Despite its apparent simplicity, Net Promoter Score (NPS) has emerged as an important instrument for airlines aiming to improve their service offerings, deepen customer connections, and drive operational efficiencies.
The NPS formula: how does it work?
NPS divides passengers into three categories based on their responses to the suggestion question.
Promoters (scoring 9-10) are the airline’s most loyal customers who not only enjoy their experience but are likely to suggest it.
Passives (scoring 7-8) are satisfied consumers who are less likely to promote the airline.
Detractors (scoring 0-6) are unsatisfied travelers who may encourage others to avoid traveling with the airline.
To compute the NPS score, subtract the percentage of detractors from the percentage of promoters. The value that emerges may range from -100 to +100. In a service-oriented industry, such as aviation, a score above 50 is considered extraordinary, but a positive NPS is generally seen as a good indicator.
Why airlines use NPS: Understanding customers.
NPS allows airlines to quickly and efficiently assess passenger satisfaction with their whole experience. A high NPS may result in strong brand loyalty, whereas a low score may indicate that service flaws exist.
For example, if passengers give an airline a low rating owing to long wait times or bad in-flight service, this information is actionable and may be utilized to inform operational improvements.
Airlines can use NPS surveys to track changes in passenger opinion following the introduction of new services or policies, such as improved in-flight entertainment, upgraded seats, or more efficient check-in procedures.
Delta Air Lines conducts post-flight surveys to analyze customer service, seat comfort, and food quality. Delta uses this data to improve its operations. If a guest has a complaint about their in-flight meal, the airline can use the NPS score to identify trends and change catering.
Enhance the client experience
Airlines are under pressure to improve the passenger experience as demand for premium service in economy class rises and low-cost carriers arise. NPS enables airlines to focus on the most critical variables for their customers.
Is it the cabin crew’s friendliness? The simplicity of checking in? What about the quality of the in-flight catering? Airlines should prioritize improvements in areas that will have the biggest impact on overall satisfaction by tracking NPS levels across numerous touchpoints of the consumer journey.
United Airlines measures passenger satisfaction with gate agents and in-flight services using Net Promoter Score (NPS). When passengers report a negative experience via NPS feedback, United’s customer care team frequently approaches them immediately to apologize and offer reimbursement in the form of miles or vouchers.
This customized care helps to resolve difficulties quickly and frequently makes clients feel appreciated, even after an unpleasant experience.
Customer loyalty and retention.
It is usually claimed that the expense of obtaining a new customer is substantially more than that of keeping an existing one. NPS serves as a statistic for consumer loyalty, with a direct impact on retention rates.
Customers who are recognized as “Promoters” are more likely to return and influence the purchasing decisions of others. One of the most reliable means of promotion is word-of-mouth marketing, which can be offered by a large number of promoters.
Furthermore, regular passengers with a high NPS score may be more willing to participate in reward programs, purchase higher-value tickets, or provide comments that can improve the entire service experience.
American Airlines uses NPS to categorize its input based on consumer profiles. The airline may discover that business travelers are extremely delighted with its premium cabin amenities, whilst leisure travelers may be dissatisfied with its budget options. This segmentation informs the airline’s marketing and operational strategy.
Evaluating staff performance
In the aviation sector, employees frequently act as the organization’s public face. Flight attendants, ground crew, and customer service representatives all have a big impact on the passenger experience.
A well-designed NPS program can help assess consumer sentiment while also providing significant insights into employee performance. A high NPS score has a significant positive impact on the airline’s workers, highlighting the importance of customer-focused training and motivation.
Additionally, NPS can be used to promote employees who deliver great service, encouraging a customer-centric culture inside the firm. Employees are much more likely to feel invested in the airline’s growth when they see how their actions are directly related to increased consumer loyalty.
NPS is integrated into Southwest Airlines’ staff recognition programs, which are notable for their customer-centric and friendly attitude. Staff members who obtain high evaluations from passengers are publicly recognized and praised, creating a culture that prioritizes the demands of the consumer.
Competitive-benchmarking
In the airline sector, there are numerous companies vying for the same passenger base. Tracking NPS allows airlines to compare their performance to that of industry competitors.
In addition to their own NPS data, airlines can learn from their competitors’ accomplishments and challenges. To keep a firm presence in the industry, competitive intelligence can stimulate the development of new projects and innovations.
Airlines with a high NPS score frequently use this as a selling point in their marketing campaigns, luring new consumers who want to experience what they believe to be superior service.
Airlines can also tailor their tactics to meet the unique needs of specific consumer segments by analyzing NPS trends in different areas or marketplaces.
Alaska Airlines, which has continuously achieved excellent customer satisfaction ratings, compares its Net Promoter Score (NPS) to that of other US airlines on a monthly basis to ensure that its competitive edge is maintained.
This will allow the airline to optimize its customer experience strategy in order to maintain market share and outperform competitors.
Limitation in the implementation of NPS
Although the NPS has been a popular tool for assessing customer satisfaction in the airline sector, its emphasis on the likelihood of a recommendation may oversimplify the complexities of customer experiences, resulting in a severe drawback.
The necessity for an alternative to NPS stems from an understanding that customer-centricity covers more than just recommendation intent. Data from 53 evaluations of US companies found that NPS was not a good predictor of revenue growth.
Furthermore, scientists have raised doubts about the science that underpins NPS. Several studies, including Reichheld’s original 2003 research, find that NPS is associated with historical development rather than future growth.
As a result, while it can be a reliable trailing signal, it is not always a reliable prediction. There is also little evidence to demonstrate that the NPS-based classification of customers as Detractors, Passives, or Promoters accurately predicts future customer behavior.
Since gaps and inconveniences are commonly detected using NPS, the information must be separated. The application of a performance model is vital.
The average NPS score for airlines in the United States is 27. SATMETRIX and CustomerGuage analyzed 26 global airlines and found an average NPS score of 28.
NPS airline score benchmarks
| Company | NPS Score |
|---|---|
| Aeroflot | 73 |
| Alaska | 71 |
| Southwest Airlines | 71 |
| Jet Blue | 67 |
| Garuda Indonesia | 65 |
| Lufthansa | 57 |
| Emirates | 54 |
| United Airlines | 50 |
| Virgin America | 48 |
| IAG | 46 |
| Qantas | 44 |
| Delta | 41 |
| Air Asia | 38 |
| Finnair | 28 |
| Jet Airlines | 27 |
| Air France | 24 |
| Thomas Cook | 24 |
| AirTran | 19 |
| Continental | 17 |
| Singapore Air | 10 |
| American Airlines | 3 |
| US airways | -8 |
| Batavia Air | -11 |
| EasyJet | -16 |
| Flybe | -24 |
| Ryanair | -61 |
Aeroflot led the NPS scoreboard with a 73. According to the creators of NPS (Bain & Company) any score above 0 is good, 50 and above being excellent and 80 being world-class.
United Airlines, which improved from a score of 10 in 2014 to 50. Despite the obstacles United encountered due to the grounding of Boeing 737 Max 9 aircraft, they have achieved an enhanced NPS score on flight comfort, Wi-Fi access, and in-flight entertainment. Enhancing overall passenger satisfaction.
Future of NPS in aviation
As aviation progresses, airlines will increasingly utilize customer input to enhance service quality. Advancements in artificial intelligence will enable airlines to analyze NPS data more intricately, uncovering trends and patterns that were previously challenging to discern.
Machine-learning algorithms can forecast the impact of alterations in specific service domains on customer satisfaction, enabling airlines to make more precise data-driven decisions.
Furthermore, NPS could have a more significant role in the creation of individualized experiences. Utilizing comprehensive passenger data, airlines can customize their services to align with the distinct interests of individual consumers, hence enhancing happiness and loyalty.