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What is an NPS score and why is Costco's considered world class

Updated: Nov 6, 2020

NPS stands for Net Promoter Score which is a metric used in customer experience programs. NPS measures the loyalty of customers to a company.

Since Costco's business depends so much on membership retention, a high NPS score isn't just a "good to have", it's essential.

Any NPS score over 70 is considered world class. Costco scores a 79!

According to Retently, there are a few important factors for a high NPS score. Costco definitely connects on the following:

High Customer Retention and Growth

1. Simple, Reliable Services & Products

2. Fast, Straightforward, Quality Services

3. Amazing Customer Service

4. Unique, Innovative Products and Offers

Data from Customer Guru

Quick cross-section of companies NPS scores

Toyota: 33

Facebook: -21

Google: 11

Apple: 47

BMW: 40

Amazon: 25

Subway: 2

How does this impact packaging?

We, as packaging professionals [and brand owners], need to create solutions that preserves Costco's image, loyalty and perspective. Things like

  • Appropriate environmental choices

  • Easy opening features

  • Premium print & materials

  • Structurally sounds designs

  • Easily shopped pallets

  • Clean professional lines

JBL's new Horizon Multisensory Alarm Clock

The Costco Packaging Guys and another other Costco loyalists don't find this high NPS score surprising. But, we think it's very cool to be in some awesome company at the top of the NPS heap.

Fortune 500's top 20 companies in 2020/ NPS score

Walmart -4

Exxon Mobil 2

Chevron 5

Berkshire -6

Apple 47

GM 3

GE 20

Ford 9

CVS -5

McKesson -4

ATT 15

Valero 0

United Health 1

Verizon 7

Amerisource 5

Fannie Mae 3

Costco 79

HP 29

Kroger 5

Until next time.



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