The Net Promoter Score (NPS) has become a key indicator for measuring customer satisfaction and loyalty in many sectors, including financial services. Developed in 2003 by Fred Reichheld, the score is based on a simple but effective approach. It involves asking customers a single question: “Would you recommend this product or service to a friend or colleague?” The answers, graded from 0 to 10, are used to categorize customers into three distinct groups: promoters (those giving a score of 9 or 10), passives (7 to 8) and detractors (0 to 6). The NPS is then calculated by subtracting the percentage of detractors from that of promoters, giving an overall score that can range from -100 to +100.

This indicator is particularly prized for its ability to offer a direct, quantifiable insight into the relationship customers have with a company, their level of satisfaction and, most importantly, their propensity to recommend it to others. This makes it a powerful strategic tool, particularly in sectors where trust is paramount, such as banking, asset management and wealth management.

Using NPS for a bank

For a bank, NPS is a key barometer for assessing the quality of its services, whether in current accounts, loans or investment products. A high score would indicate that customers feel well taken care of, that services live up to their expectations and, above all, that they are willing to recommend this bank to others. This can serve as a powerful marketing argument, particularly in an increasingly competitive market where recommendations from friends and family play a growing role in the choice of a financial institution.

A bank can also use NPS to identify specific friction points. If the results show a high rate of detractors, this could signal customer service issues, fees deemed too high, or a digital interface that’s difficult to use. In a context of increasing banking digitalization, these elements are essential to maintain customer trust and continually improve the user experience.

NPS in asset management

For an asset management company, NPS can be a strategic tool for assessing investor perception of the quality of their portfolio management. A high NPS means that customers are satisfied not only with investment performance, but also with the clarity of the information provided, the transparency of costs and the quality of customer service. A low NPS, on the other hand, could signal dissatisfaction with lower-than-expected returns, a lack of communication on investment strategies, or fees perceived as excessive.

NPS would enable a management company to track the evolution of customer satisfaction over the long term, and spot trends of dissatisfaction before they turn into contract terminations. For example, a manager could detect that more proactive communication on market fluctuations would help reduce investor anxiety and boost loyalty.

The benefits for wealth management advisors

For a wealth management advisor, who relies on a relationship of trust and proximity with his clients, the NPS is a particularly relevant indicator. Referrals are often one of the main sources of new customer acquisition for independent advisors or specialist firms. A high NPS would indicate that the advisor is perceived as reliable, competent and capable of meeting his clients’ financial and wealth objectives. This could be a major asset in differentiating his offer, particularly in a sector where personal recommendations carry considerable weight.

Conversely, a low NPS could point to a lack of understanding of customers’ specific needs, inadequate communication, or advice perceived as inadequate in the face of complex wealth situations. NPS provides direct feedback that can be used to adjust advice, improve the quality of interactions and offer more personalized follow-up.

A long-term strategic tool

Whether for a bank, an asset management company or a wealth management advisor, the Net Promoter Score offers much more than a simple measure of satisfaction. It helps to turn satisfied customers into brand ambassadors, while identifying friction points likely to affect long-term loyalty. By proactively using this indicator, players in the financial sector can not only improve the customer experience, but also increase brand awareness and attract new customers, in an industry where trust remains a key success factor.