Thursday, July 24, 2014
Filling The Hole In Your NPS
10:28 am edt
Corporations large and small depend upon their NPS (Net Promoter Score) to evaluate staff,
compare themselves to their competitors, monitor their progress over time, and more. As you probably know it's a survey-based
process asking people how likely they are to ‘recommend’ a brand, service or company to others based on their
own personal experiences with the brand, service or company. The key NPS statistic is created by subtracting the number
of "detractors" (respondents who score their willingness to recommend at only a 1-6 on a ten-point scale, or 1-6
on an eleven-point scale) from the number of "promoters" (those who rate their willingness to recommend at a high
score of 9 or 10). Hence the construct of ‘net’ promoters (the proportion of a customerbase likely to promote
minus those unlikely to promote).
You Really Should Know
The NPS score is frequently criticized both because it only assesses ‘likely behavior’…
and because it fails to further probe qualities of the likely behavior. In short, it fails to provide enough information
to help remedy the extent of failure it identifies. In our work on word of mouth, we’ve addressed the NPS weakness
by focusing on actual recommendation behavior; and what was actually communicated. Here’s how we recommend NPS
programs can be enhanced to make them much more useful. They should be teamed with a 'follow-up' survey that focuses
the actual ‘reach’ of recommendations, by itemizing how many people the “promoters” actually
did speak to and what they actually said.
- Comparing how promoters’
messages, tonality and reach differed from those of detractors.
the type of emotion associated with the messages (i.e. “positive”, “negative”, “neutral”).
- Describing how recommendations are actually being communicated: narrowcast (through
private channels: phone, texts, emails, face-to-face) or broadcast (through public channels: Facebook, Twitter,
Way You Can Objectively Find Out
admittedly not the purpose for which we developed it, a tool like our Buzz Barometer® addresses
all these missed opportunities and increases the value of NPS programs. Our approach is simple; we would draw the email
addresses of three groups of customers who had responded to a corporation's survey that included the NPS question. One
group would be those who had rated the brand a 9 or 10, a second group would be those who rated the brand a neutral 7 or 8,
and a third group who scored the brand a 1-6.
We would invite customers in these three groups to respond to a
secondary survey. Our Buzz Barometer® questionnaire asks customers to report on their own word of mouth
behavior (frequency, valence, medium, message summary, etc.). All this information would allow us to produce qualitative
and quantitative pictures that bring promoters (as well as detractors and neutrals for that matter)
to life, to help the entire organization better understand the key drivers of promotion and detraction and how energetically
these positions are being spread.