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Thursday, July 24, 2014

Filling The Hole In Your NPS

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 on:


  • Assessing 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.
  • Identifying 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, blogs).

One Way You Can Objectively Find Out

While 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.


10:28 am edt          Comments


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Customer Experience Partners, LLC
Measurement, Management, Optimization
Contact us at: 203-655-0090 or
pruden@customerexperiencepartners.com

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