Keeping an airline on the air has proven to be extremely challenging. Managing on-time performance, maintenance of the aircraft fleet, complying with governing bodies, keeping up with regulations and the expansion of route networks. These are just a few elements; they are all achieved while keeping up with heavy operational costs and contemporary economic factors on a global scale. While airlines are in a race to maximize profit, passenger comfort and in-flight services are often overlooked.

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This article explores the significance of Net-Promoter Score (NPS) in aviation and why airlines rely on it.

What is NPS in aviation, and why do airlines rely on it?

Understanding customer satisfaction has never been more critical in the fiercely competitive aviation industry, where passengers have an infinite number of options and a range of methods to express their opinions. Net Promoter Score (NPS) is a potent metric that evaluates consumer loyalty and satisfaction by asking the straightforward question: “How likely are you to recommend this airline to a friend or colleague?”. In a significant and positive way, growth was predicted by asking individuals how many times they have recommended a company in the recent past.

NPS has emerged as a vital tool for airlines seeking to enhance their service offerings, strengthen customer relationships, and drive operational improvements, despite its apparent simplicity.

The NPS formula: How it works?

Passengers are divided into three categories by NPS according to their responses to the recommendation question:

Promoters (score 9-10): These are the airline’s most devoted consumers, who are not only content with their experience but also inclined to recommend it.

Passives (score 7-8): These are content customers; however, they are not particularly enthusiastic about the airline and are unlikely to go out of their way to recommend it.

Detractors (score 0-6): These are dissatisfied passengers who may serve as an incentive for others to avoid flying with the airline.

The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. The value that emerges may vary from -100 to +100. In an industry that is service-oriented, such as aviation, a score above 50 is considered exceptional, while a positive NPS is generally regarded as a positive indicator.

Female Passenger Using A Laptop On A Plane

Photo: Gaudilab | Shutterstock

Why airlines use NPS

Understanding customers

NPS provides airlines with a rapid and efficient method of evaluating the satisfaction of passengers with their overall experience. A high NPS may result in robust brand loyalty, while a low score may indicate that service deficiencies are present. For instance, if passengers are rating an airline poorly due to lengthy wait times or subpar in-flight service, this data is actionable and can be used to inform about operational improvements.

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NPS surveys can be employed by airlines to monitor changes in passenger sentiment following the implementation of new services or policies, such as improved in-flight entertainment, updated seating, or more efficient check-in procedures. Delta Air Lines surveys customers after flights to assess customer service, seat comfort, and food quality. Delta refines its operations with this data. If a guest complains about their in-flight meal, the airline can utilize the NPS score to identify trends and alter catering.

Enhance customer experience

Airlines are under pressure to enhance customer experience, given the increasing expectation for premium service in economy class and the emergence of low-cost carriers. NPS enables airlines to concentrate on the factors that are most important to their consumers. Is it the cabin crew’s friendliness? The ease of check-in? What is the quality of the in-flight catering? Airlines can prioritize enhancements in the areas that will have the greatest impact on overall satisfaction by monitoring NPS scores across multiple touchpoints of the consumer journey.

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Passenger satisfaction with gate agents and in-flight services is monitored by United Airlines by using NPS. United’s customer service team frequently contacts passengers directly to apologize and provide recompense, such as miles or vouchers, when they report a negative experience through NPS feedback. This personalized attention is instrumental in the rapid resolution of issues and frequently leads to customers feeling appreciated, even in the aftermath of a negative experience.

Customer loyalty and retention

It is frequently asserted that the cost of acquiring a new consumer is significantly higher than that of retaining an existing one. NPS functions as a metric for consumer loyalty, which has a direct impact on retention rates. Not only are customers who are identified as “Promoters” more likely to return, but they are also more likely to influence the purchasing decisions of others. One of the most trusted forms of promotion is word-of-mouth marketing, which can be provided by a strong base of promoters.

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Furthermore, individuals who are frequent travelers and have a high NPS score may be more likely to enroll in loyalty programs, select tickets with a higher value, or provide feedback that can enhance the overall service experience. American Airlines employs NPS to categorize its feedback according to consumer profiles. The airline may discover that business travelers are exceedingly satisfied with its premium cabin services, while leisure travelers may express dissatisfaction with its budget options. The airline tailors marketing and operational strategies resulting from this segmentation.

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Measuring employee performance

In the aviation industry, workers frequently serve as the organization’s public face. The passenger experience is significantly influenced by the work of flight attendants, ground personnel, and customer service agents. A well-designed NPS program can not only assist in the measurement of consumer sentiment but also offer valuable insights into employee performance. The airline’s workforce is frequently positively impacted by a high NPS score, underscoring the significance of customer-focused training and motivation.

Additionally, the utilization of NPS can be employed to incentivize employees who provide exceptional service, thereby promoting a culture of customer-centricity within the organization. Employees are considerably more inclined to feel invested in the airline’s growth when they observe that their actions are directly linked to enhanced consumer loyalty.

NPS is integrated into Southwest Airlines’ employee recognition programs, which are distinguished by their customer-centric and amicable approach. Staff members who receive exceptional ratings from passengers are publicly recognized, and their accomplishments are celebrated, thereby cultivating a culture that prioritizes the needs of the consumer.

Competitive-benchmarking

In the airline industry, there is an abundance of competitors competing for the same pool of passengers. Tracking NPS enables airlines to compare their performance to that of their industry rivals. In addition to their own NPS data, airlines can derive insights from the successes and obstacles encountered by their competitors. To maintain a strong foothold in the industry, this competitive intelligence can inspire the development of new initiatives and innovations.

Airlines that have a high NPS score frequently utilize this as a selling factor in their marketing campaigns, thereby attracting new customers who desire to experience what they consider to be superior service. Airlines can also modify their strategies to accommodate the distinctive requirements of specific consumer segments by examining NPS trends in various regions or markets. Alaska Airlines, which has consistently achieved high customer satisfaction ratings, conducts regular comparisons of its NPS with those of other U.S. airlines to guarantee that it is maintaining its competitive advantage. This will enable the airline to optimize its customer experience strategies to retain market share and surpass competitors.

Male Airplane Passenger With Headphones

Photo: Parilov | Shutterstock

Limitation on the application of NPS

Although the NPS has been a widely used instrument for evaluating customer satisfaction in the airline industry, its emphasis on the likelihood of a recommendation may oversimplify the intricate nature of customer experiences, thereby presenting a significant limitation. The demand for an alternative to NPS is rooted in the recognition that customer-centricity encompasses a broader range of factors than merely recommendation intent. Research data based on 53 evaluations of US companies revealed that NPS was not a reliable predictor of revenue growth.

Additionally, scientists have expressed concerns regarding the research that underpins NPS. Several studies, including Reichheld’s original research conducted in 2003, say NPS is correlated with historical development rather than with future growth. Consequently, it may serve as a reliable trailing indicator, but is not necessarily a reliable predictor. There is also a lack of evidence to suggest that the NPS-based classification of customers into Detractors, Passives, and Promoters accurately predicts future customer behavior. Since gaps and inconveniences a widely identified using NPS, the information needs to be segmented. The application of a performance model is vital.

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Photo: Nordic Studio | Shutterstock

The average NPS score for airlines in the US is 27. A comprehensive analysis by SATMETRIX, CustomerGuage revealed an average NPS score of 28 among 26 global airline companies.

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.

Singapore Airlines Inflight Services

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.

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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.

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