Getting the best from Net Promoter Score

Getting the best from Net Promoter Score

All the evidence would seem to indicate NPS is too volaIle to be used as central ROI for customer experience ‐ links to retention, growth and profit are more appropriate and compelling.

Human behaviour dictates that if something is difficult, people will find an alternative route or a workaround.

NPS reflects the symptom – effort closer to the cause. The consensus of opinion is that effort should be part of the customer experience narrative rather than adopted as a measure.

  • Temperature gauge is a good analogy, problem when too hot or cold
  • Use with a mix  of complementary measures
  • Better at judging effect on specific touch points
  • Users are conscious that it is historical by nature, for example it would be difficult for NPS to guide Blockbuster to an online model
  • Do we always want recommendation? Some customers cost us money or are prone to take advantage
  • Attention is needed on emphasis of survey, many Costa customers use the service as somewhere to meet, the coffee may be irrelevant
  • Factor normalisation (see below)

Normalisation

  • Human relationships cannot continuously improve
  • National cultures will guide a set of normal emotional responses
  • UK culture may well provide a negative NPS as normal response
  • We should expect a customer relationship to do the same
  • Over time a positive and negative reaction will normalise and be reflected in the score
  • NormalisaIon is often seen as fluctuaIon in the NPS score
  • Is the new norm the key indicator?  If so, how can we measure it?

normalisation

Continually rising scores

Continuous improvement in NPS can be achieved from:

  • A low starting point
  • Scores being manipulated by rewarding customers for high score
  • Customers only being surveyed at wow or good complaint resolution point

None of these scenarios are an indication that a new and improved normal reaction has been established.

NPS is better if…

  • NPS starting point is low, is less effecIve at guiding change with higher scores
  • Survey is close to customer interaction
  • A survey is also sent after customer emotion has been rationalised
  • Used in conjunction with partners and others in customer federation (reference reflections on federation 2009)
  • Perhaps best as a guide to the effecIveness of current actions and as a guide for front line staff
  • Scale is good and bad: More replies = less direct linkage;  Less replies = more easily linked
  • Not as effecItie in guiding strategy as driven by a view of historical data
  • It is recognised that NPS will – and should always be  -­  a moving figure, a good indicator of movement
  • Each product and service will have a natural ceiling
Common issues with Net Promoter Score

Common issues with Net Promoter Score

It’s well know that NPS is problematic in terms of its ability to measure customer experience. But  why? Here are some common issues:

  • Variability and fluctuaIon are difficult to interpret into direct actions
  • Organisations who use it on a tactical level find the link to action easier to find
  • Often held as responsible for driving the wrong behaviours
  • Constantly challenged by statisIcians and intuitive thinkers, undermining its authority
  • Probably the most controversial subject in customer experience development
  • In too many cases it’s a hypothetical question
  • The drive for a continuous upward trend can result in considerable manipulation that is often recognised by customers
  • Some question the need to translate emotions into a tangible

 

So why is NPS challenged so regularly?

 

 

  • Statistical viability – the 1 to 10 scale and variability in the point of engagement
  • Manipulation is rife, you get what you tolerate not what you hope for
  • Free or anecdotal comment is vital, but available from many other sources
  • Every time you think you have it straight in your head something changes
  • How often is 9/10 score a reasonable expectation? Is anything 100 recommended?
  • Customer experience should remain an emotionally based discipline
  • Difficulty in demonstrating insight, action and reward
  • Fluctuating scores
  • Scores inevitably plateau