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
Quick cross-section of companies NPS scores
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
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
Exxon Mobil 2
United Health 1
Fannie Mae 3
Until next time.