Customers Love These 3 Healthcare Companies.

Net Promoter Scores provide insight into customers’ satisfaction and may be the basis for market-beating returns.

It is nearly impossible to predict how the market will behave in the near term. However, if you’re trying to find opportunities to earn a profit from your hard-earned money, you might want to begin by looking at companies that have satisfied customers. We’ll look at three companies that have met their customers according to the Net Promoter Scoring (NPS) metric.

NPS is a measure built on respondents’ response to a specific survey question that reads like this: “On a level of 0 to 10, how likely could you be to suggest this provider, product, or service to a friend or associate?” A follow-up one or three-question survey typically follows the question to understand why every respondent chose the answer they did.

But it’s the initial question that matters. People who answer with an 8 or 9 are considered “promoters” — customers who keep returning and, most importantly, will eagerly recommend the company to friends and family. The ones who answer with a score of less than 6 are “detractors” — folks who would denigrate the business and its offerings. Add the number of detractors from promoters’ proportions, and you’ll get a net promoter score.

Naturally, higher scores are better. They can be anywhere from -100 to +100. If an organization’s NPS is harmful is a sign of trouble. A positive number, however positive, is at the very least excellent. Based on the advice of management experts of Bain & Co., who came up with the NPS score, a score of 20 is considered good, over 50 is excellent, and anything that is 80 or more is considered an elite.

This measure of customer satisfaction also helps to predict growth in business -that brings us to three companies in healthcare that are incredibly pleased with their customers using this measure: 1Life Healthcare ( ONEM 6.50% ) with 90 percent NPS and Dexcom’s ( DXCM 3.90 percent ) with an 83 And FIGS ( FIGS 4.04 percent ) that won an 81.

1Life Healthcare

1Life Healthcare, which does business under the title One Medical, is maintaining customers happy with its primary-care medical practices, evidenced by its awe-inspiring satisfaction rating of 90. The primary care platform that is based on membership has grown its member base by 34% in 2024 and rose to 730,000. It also increased its revenue for the year by 64 percent. With such an excellent NPS, it’s not surprising that One Medical’s membership programs have more than 90 percent retention rates.

The company works to keep its patients in good health as well. According to The New York City Health Department, the office was ranked first in viral load reduction in people living with HIV (a measurement of controlled illness). Mental health treatment at One Medical has been proven to result in 50% less severe anxiety. For diabetic patients, One Medical’s patients experience a reduced blood sugar level that is double what other researchers have observed in research papers. Its model appears to be working for the patients.

Combining high-quality health care and happy customers have led to growth and is expected to continue. The company is planning to finish 2024 with 14 percent more members than at the start of the year. The company also anticipates that the total revenue for the year will be somewhere in the range of $1.045 billion to $1.085 billion degrees, about 70% higher than the 2024 year.

Despite all the expansion, Wall Street doesn’t seem to be able to grasp the concept. One Medical’s shares have fallen nearly 40% over the past year, roughly 80percent from their peak in February 2024. This makes this stock a fascinating watchlist potential candidate.

Dexcom

Medical device maker Dexcom additionally has a devoted following. Its well-known G6 continuously glucose monitor (CGM) system recently scored the highest NPS score of 83 in those with diabetes who utilize it. These happy patients have brought euphoric investors. Dexcom’s shares have risen by over 500% over the last five years and by over 4,900% over the past ten years.

Although it isn’t huge -the market cap of Dexcom is estimated at $51 billion. Dexcom continues to grow. Revenues grew by 23% in 2024. In international markets, sales increased by 54 percent, with the COVID-19 omicron surge mainly in the rear-view mirror and its sales force getting ready to go into medical facilities and driving uptake of the device. The market is slowing. In December, the rival Medtronic received a cautionary letter issued by the Food and Drug Administration regarding issues in their insulin pumps.

To add to the tailwinds of DexCom in the direction of the company’s growth, the American Diabetes Association recently stated that CGM could be beneficial for people with diabetes who require daily insulin injections. It’s almost double the size of Dexcom’s target market for CGM in the U.S., from 4 million to around 7 million. Dexcom believes that the new regions could more than triple the total market it can address within the second half of 2024. Furthermore, there is a significant increase in the number of people who have diabetes. Centers for Disease Control and Prevention estimates that 38 percent of the adults in America — or 96 million people suffer from pre-diabetes. With over 40 percent of U.S. adults reporting undesired weight gain since the beginning of this pandemic possibility of a marketplace for Dexcom is enormous.

FIGS

The healthcare outfitter FIGS often draws comparisons with the maker of athleisure clothing, Lululemon Athletica ( LULU 0.60 percent ), because of its trendy scrubs. Based on FIGS’ score of NPS 81 and Lululemon’s rating of 83, both have done a great job at pleasing their customers. And scrubs manufacturer FIGS has an increase in sales to prove that.

FIGS has been firing all the right gears, with net revenues growing by 62 percent to $420 million in 2024. The active customer base increased by 46 percent to 1.9 million in the last year, and the net revenue per active client grew by $22 for the year and 39 in the previous two years. It also increased its repeated customer revenue by 68%, an increase from 62 percent in 2020. Additionally, its fledgling internationally-oriented business — at present, its sole foreign markets comprise Canada, the U.K., Canada, and Australia — doubled by 2024, generating the company 7% of its revenues. Management plans to open new markets by 2024.

FIGS is well-aware of its customers. It has a unique approach to its website to provide more relevant information to its users, resulting in a higher conversion rate. In the fourth quarter of 2018, the personalized experiences led to an increase in conversion rates that were more than twice the rate before they introduced tailored content. The majority of new customers return and purchase again within a year. If customers purchase from FIGS within two years, they will remain loyal. Nearly 90% of customers buy from FIGS again within the following year.

Businesses with net promoter scores that are high are worth taking a second look at

While a Net Promoter score isn’t the only method to gauge the outlook of an investment, a high number is sure to draw the attention of investors.

Businesses with more scores than their competitors have been known to reward shareholders over time. Although the prices of individual shares and the market are constantly in flux, A high NPS demonstrates the kind of brand loyalty that will last longer than the fluctuations in the short term.